Nhat Nam Real Estate CEO is detained, what should investors do to get their money back?

The news that Ms. Vu Thi Thuy - General Director of Nhat Nam Real Estate Investment and Trading Joint Stock Company (Nhat Nam Real Estate Company) was detained for fraudulent appropriation of property has made many investors who invested in this company, who were already worried, even more worried about their assets. From a legal perspective, the assessment of lawyers also shows that the possibility of getting their money back is very difficult.

General Director of Nhat Nam Real Estate Investment and Trading Joint Stock Company Vu Thi Thuy is being detained by the police. (Photo: Chinhphu.vn)

Lawyer Truong Anh Tu, Chairman of TAT Lawfirm, said that in order to get their money back soon, investors need to quickly gather and provide documents and evidence about the case to the authorities. This will both ensure legitimate rights and help the authorities consolidate their investigation records. However, the time it takes to get the money back will depend largely on the agencies conducting the proceedings.

The lawyer emphasized that the risks and dangers for investors are very clear when Ms. Vu Thi Thuy is being detained for signs of fraud and property appropriation. “ At this time, investors need to gather documents (contracts signed with Nhat Nam before) to provide to the authorities. They also need to exchange frankly, honestly, not hide information but openly and transparently so that the investigation work of the authorities can proceed more smoothly. Avoid the case of slow information provision, or even avoidance, then the risk of customers falling into the situation of “slow buffalo drinking muddy water”, at that time, the opportunity to recover the investment money will be more difficult ”, Lawyer Truong Anh Tu warned.

According to the Chairman of TAT Lawfirm, Nhat Nam's form of operation is no different from real estate multi-level capital mobilization. " Investors need to understand that the higher the interest rate, the easier it is to fall into a trap, the greater the risk. Nhat Nam Real Estate's previous capital raising activities clearly showed many unusual signs. In the context of a difficult real estate market, a business offering an interest rate of 34 - 46%/year, even 70 - 80%/year is unimaginable and unusual," Mr. Tu added.

Previously, many opinions also warned that the purpose of Nhat Nam's use of mobilized capital had many suspicious signs, the possibility of operating according to the "Ponzi" model (taking money from previous investors to pay later investors), at some point Nhat Nam Company would no longer be able to pay investors, disputes and lawsuits would arise.

Also discussing this issue, lawyer Tran Dinh Thang, KoCi Law Firm, Hanoi Bar Association said that investors of Nhat Nam Company are facing many risks.

After signing the contract and depositing money, investors will receive daily profits into their accounts. However, when distributing profits to investors, Nhat Nam Company did not use a corporate account but used Ms. Vu Thi Thuy's personal account to transfer money. This behavior shows signs of concealing the income distributed to investors, thereby avoiding the obligation to declare personal income tax on behalf of investors, violating the Law on Tax Administration.

According to initial investigation information, Nhat Nam Company has established many branches and transaction offices in provinces and cities across the country, attracting investors to contribute capital with a commitment to pay high profits of an average of 46%, even some commitments up to 70-80% per year. Investors only need to sign a contract and receive money, without having to care about the company's production and business activities. Such capital mobilization has many potential risks, under the guise of a transaction called a "Business Cooperation Contract". The form that Nhat Nam implemented is similar to that of Nguyen Thai Luyen's Alibaba Company, which was previously investigated, prosecuted and tried with a severe sentence.

After the procedural decisions such as initiating a case, prosecuting the accused, if there are sufficient elements to constitute a crime, the prosecuting agency will proceed to freeze assets, freeze accounts, freeze civil and economic transactions related to individuals and organizations to ensure the execution of the judgment later, so Nhat Nam's business activities may be greatly affected.

The prosecuting agencies will review and evaluate the documents and evidence of the case to determine the amount of damage to each person and the responsibility of CEO Nhat Nam for returning the amount of money that has been appropriated to the victim. However, the victim will have little chance to get back the money that he has spent because companies that often commit such acts are a way to mobilize money from later people to pay earlier people and use it for other expenses or to disperse the mobilized money, so when they are arrested, the mobilized money is almost gone or very little left.

A headquarters of Nhat Nam Real Estate Company.

“ The ability to get money quickly for investors today will also be very difficult. In case of a lawsuit, the court will later decide to pay the victim. This will also be shown in the effective judgment. At that time, the enforcement agency will enforce the specific judgment. Currently, the amount of money that investors have transferred to Nhat Nam has not been specifically determined. Therefore, the prosecution agency will freeze all related assets of Nhat Nam to ensure that they are not dispersed. At the same time, the authorities will also carry out the proceedings until the court has a legally effective judgment. From this point until the court has a final judgment, investors will have to provide documents and evidence to protect their rights. However, losses in time, effort and other risks are inevitable for investors who have invested in Nhat Nam real estate projects ," analyzed Lawyer Thang.

On September 7, the Economic Police Department of Hanoi City Police temporarily detained Ms. Vu Thi Thuy (40 years old, from Thanh Hoa province), General Director of Nhat Nam Real Estate Investment and Trading Joint Stock Company (Nhat Nam Real Estate) for providing false information about Nhat Nam Company having many real estates, investment projects, and high profits to mobilize capital from many individuals, then using part of this money to pay interest to the above individuals. From there, Ms. Thuy appropriated an exceptionally large amount of money.

Before CEO Vu Thi Thuy was detained, the police, localities and many press agencies had warned about Nhat Nam Real Estate Company many years ago.

Accordingly, from 2019 to 2022, Nhat Nam Company has offered a profit rate of 34 - 46%/year, even in many projects, the interest rate is 70-80%. In addition, this company also offers promotions of giving away more gold, more land if anyone invests money, and dividing profits by day. Therefore, tens of thousands of people across the country rushed to invest "hoping to get rich" with Nhat Nam Company.

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