A head of a rotating savings and credit association has been prosecuted for fraud and misappropriation of assets.

On June 23, information from the Thanh Hoa Provincial Police stated that on June 22, the Thanh Hoa Provincial Police Investigation Agency issued a decision to initiate a criminal case, indict and temporarily detain suspect Nguyen Thi Minh (47 years old, residing in Dien Lu commune, Ba Thuoc district, Thanh Hoa province) to investigate the act of fraud and appropriation of property.

The police read out the decision to initiate criminal proceedings, indict the suspect, and temporarily detain Nguyen Thi Minh (wearing a red shirt).

According to the initial investigation by the Thanh Hoa Provincial Police, in 2021, Nguyen Thi Minh organized a rotating savings and credit association (ROSCA). By June 2022, approximately 100 people in Dien Lu commune had participated, with a total amount of about 10 billion VND.

However, by the end of June 2022, Nguyen Thi Minh unexpectedly declared bankruptcy, becoming unable to repay the money from the informal lending scheme to the participants.

Worried about losing their money, many people filed complaints with authorities accusing Nguyen Thi Minh of fraud and misappropriation of property. People also repeatedly gathered in large numbers at government offices at the commune, district, and provincial levels to protest, causing disruption to public order and security.

The police determined that, while running the rotating savings and credit association (ROSCA), Nguyen Thi Minh collected money from participants and then used it for personal expenses and debt repayment, resulting in her inability to pay interest and principal due to the participants.

The case is currently being investigated by the Thanh Hoa Provincial Police.

Source link: https://thanhnien.vn/khoi-to-mot-chu-hui-lua-dao-chiem-doat-tai-san-185230623121410527.htm