Lam Dong: International fraud scheme exposed.

The fraud case at Nam Ban Silk Co., Ltd. (Lam Ha commune, Lam Dong province) has exposed the exploitation of trust and misappropriation of assets from foreign partners. The government and relevant agencies affirm that they will handle the case strictly, while protecting the rights of honest businesses and contributing to building a safe and transparent trading environment.

Lam Dong police read out the arrest warrant for Nguyen Khac H., Director of Nam Ban Silk, at his residence on July 14th for the crime of defrauding foreign partners.

When trust becomes a tool for crime

Nam Ban Silk Co., Ltd. - once considered one of the leading silk export companies in Lam Dong province - has exploited its reputation and position to sign a series of trade contracts with many foreign businesses, mainly from India and Hong Kong.

However, instead of fulfilling their contractual commitments, the company's management, led by Director Nguyen Khac H., systematically directed fraudulent activities. Specifically, the company required international partners to pay a portion of the contract value in advance (usually 20% to 30%) – a common practice in international trade. After receiving the advance payment, the company failed to deliver the goods as agreed.

Since the end of 2023, due to financial difficulties and the inability to continue production, both factories of Nam Ban Silk Company have ceased operations. However, instead of transparently informing partners, the company's leadership instructed subordinates to forge documents related to the shipment of goods, creating the illusion that the goods had been dispatched and were en route. Based on these forged documents, many foreign partners continued to transfer the remaining payments for their contracts. However, by the delivery deadline, they had not received any shipments.

The money obtained from the contracts was not used for production, but was misappropriated for personal purposes or to pay off debts. Through the investigation, authorities determined that the initial amount misappropriated was approximately 3.2 billion VND.

During the investigation, the defendant Nguyen Khac H. admitted that his fraudulent actions stemmed from the company's insolvency and mounting debts. He stated that the use of deceptive tactics was not only a temporary solution but also aimed at personal gain amidst the financial crisis.

The search of the two defendants' workplaces and residences yielded numerous relevant documents, contributing to the evidence supporting the determination of the alleged crime of "Fraudulent appropriation of property" as stipulated in Article 174 of the Penal Code. The decisions to initiate criminal proceedings, indict the defendants, and issue arrest warrants for Mr. Nguyen Khac H. and Mr. Nguyen Phi C. (his deputy) were approved by the Lam Dong Provincial People's Procuracy, ensuring that the proceedings were conducted in accordance with regulations, rigorously, and objectively.

The decisive intervention of the authorities.

After receiving complaints from seven (07) foreign businesses, including six (06) Indian companies and one Hong Kong company, the Lam Dong Provincial Police Department directed the Economic Police Department to coordinate with professional units to conduct verification and investigation. With a high sense of responsibility, the police force conducted verification, collected evidence and worked with relevant parties to clarify the nature of the case. Through this, the investigating agency determined the fraudulent behavior of director Mr. Nguyen Khac H. and deputy director Mr. Nguyen Phi C, with clear evidence of forging documents and misappropriating money from partners.

Currently, the Criminal Investigation Agency of the Lam Dong Provincial Police is continuing to verify 11 contracts related to 6 Indian companies and 12 contracts with five other foreign businesses, with a total estimated value of tens of billions of VND.

Currently, the two factories of Nam Ban Silk Co., Ltd. in Nam Ban commune, Lam Ha district, have ceased operations since November 2023, confirming their inability to produce goods and further clarifying the defendants' fraudulent intentions.

The Economic Police Force of Lam Dong Provincial Police read out the arrest warrants for the suspects at the Police Investigation Agency, ensuring transparent and lawful legal proceedings.

The Lam Dong Provincial Police have taken necessary procedural measures, including initiating a criminal case, indicting the suspects, and issuing arrest warrants for two company leaders for the crime of "Fraudulent appropriation of property." These decisions were approved by the Lam Dong Provincial People's Procuracy, ensuring transparency and compliance with the law. Simultaneously, the investigating agency conducted searches of the suspects' workplaces and residences, seizing numerous important documents as a basis for further investigation into other contracts showing signs of violations.

The Lam Dong Provincial Police affirmed that they will handle the case strictly and will coordinate with relevant agencies to clarify all violations.

The Lam Dong Provincial Police Investigation Agency is calling on companies and businesses affected by the Nam Ban Silk Co., Ltd. to cooperate by providing information via the hotline number: 02633822097.

Source: https://baolamdong.vn/lam-dong-phanh-phui-thu-doan-lua-dao-quoc-te-383919.html