How did the owner of My Hanh Group defraud people of over 1.2 trillion VND?

The Investigation Police Department of Cau Giay District ( Hanoi City) has initiated criminal proceedings and issued an order for the temporary detention of Pham My Hanh (43 years old) for 4 months on charges of fraud and appropriation of property.

Speaking to reporters, Lieutenant Colonel Nguyen Phi Hung, Head of the Economic Police Team of Cau Giay District Police, said that through monitoring the area, the district police received information about unusual signs in the fundraising activities of My Hanh Group Joint Stock Company.

Following an investigation, authorities have determined that this company's fundraising activities show signs of violating the law.

According to the commander, My Hanh Group Company, chaired and managed by Pham My Hanh, operates in the field of cultivating and trading in Ngoc Linh ginseng.

Lieutenant Colonel Nguyen Phi Hung (Photo: Hai Nam).

Stemming from the aforementioned business activities, and due to the need for capital, Hanh and her associates organized fundraising from investors between 2020 and 2022. Under Hanh's direction, the company conducted extensive advertising campaigns, "painting" out project ideas to attract investors.

Furthermore, My Hanh also promised and committed to paying investors interest rates of 24-48% per year. Lieutenant Colonel Hung considered this interest rate "very attractive compared to the general interest rate level."

Working with investors, My Hanh Group Company offered three types of contracts: a capital contribution contract for planting Ngoc Linh ginseng, a loan contract, and a contract for selling Hanh's shares in the company.

Initially, the Cau Giay District Police determined that approximately over 1,000 investors had contributed more than 1,200 billion VND to this enterprise.

Suspect Pham My Hanh (Photo: Baodautu).

Pointing out Hanh's scheme, the commander of the Economic Police Team of Cau Giay District Police said that the money from the aforementioned fundraising was not added to the working capital of the business, nor was it accounted for in the company's finances, but was instead transferred separately to Hanh's account.

Of this more than 1.2 trillion VND, Hanh only used about 1% for production and business; the rest she used to pay interest on short-term contracts, personal expenses, and to buy real estate registered in her name.

To date, there are funds that Hanh and her company have used but have not been able to account for to the investigating authorities, and the purpose of their use remains unclear.

According to Lieutenant Colonel Nguyen Phi Hung, My Hanh Group Company "inflated" the value of its business and production activities; "created" scenarios and expectations for the business that were not in line with reality; and arbitrarily changed and increased the company's value to offer much higher interest rates than its actual production and business performance.

A showroom displaying Ngoc Linh Ginseng products from My Hanh Group Company (Photo: Hong Nhung).

The company is now unable to repay the funds raised from investors. Investigators have searched the residences, workplaces, and warehouses of the suspect and My Hanh Group Company, seizing numerous documents and evidence related to the case.

The commander of the Economic Police Team of Cau Giay District Police said that during the verification and investigation process by the authorities, some investors are still waiting for Hanh to return their money.

Authorities are urging victims and investors to cooperate with the police in reporting Hanh's actions so that the Cau Giay District Police can clarify the scope, scale, and nature of the suspect's crimes, while also ensuring the rights of the victims.

The ginseng plantation is advertised on the company's website (Photo: MHG).

In addition, Lieutenant Colonel Hung also requested that organizations and individuals who had cooperative activities or received advance payments from Pham My Hanh in civil transactions cooperate with the investigating agency to recover the money. Authorities have determined that this money is also money that Hanh illegally misappropriated in the case.

"We will vigorously investigate the case, expand the investigation to include those who assisted Hanh in embezzling money, thoroughly identify the sources of the money Hanh used, recover it, and ensure the rights of the victims are protected," said Lieutenant Colonel Nguyen Phi Hung.

Source: https://dantri.com.vn/phap-luat/ba-chu-tap-doan-my-hanh-lua-dao-huy-dong-hon-1200-ty-dong-nhu-the-nao-20231110120752094.htm