Breaking up a fake functional food ring that only met 30% of quality standards, seizing a large shipment of 100 tons

Phá đường dây thực phẩm chức năng giả chỉ đạt 30% chỉ tiêu chất lượng, thu giữ lô hàng lớn 100 tấn - Ảnh 1. — Defendants Khuc Minh Vu, Le Thi Toan and Do Manh Hoang - Photo: Provided by the police

On April 26, the Ministry of Public Security 's Investigation Police Agency announced that it had initiated a case of manufacturing and trading in counterfeit food, food additives, and violating accounting regulations causing serious consequences.

The police investigation agency also prosecuted the accused, issued arrest warrants, and search warrants for five people including:

- Nguyen Nang Manh (Director of MegaPhaco Company, Chairman of the Board of Directors of MediUSA Company);

- Do Manh Hoang (Director of MediPhar Company);

- Khuc Minh Vu (Director of Viet Duc Company);

- Pham Thi Huong (accountant in charge of 4 companies MediPhar, MediUSA, MegaLife, Hung Phuong);

- Le Thi Toan (treasurer of 6 companies MediPhar, MediUSA, MegaLife, Hung Phuong, MegaPhaco, Viet Duc).

Phá đường dây thực phẩm chức năng giả chỉ đạt 30% chỉ tiêu chất lượng, thu giữ lô hàng lớn 100 tấn - Ảnh 2. — Defendants Nguyen Nang Manh and Pham Thi Huong - Photo: Provided by the police

According to the investigation, since 2016, Nguyen Nang Manh and his accomplices have established and operated many companies to legalize the production and trade of fake functional foods, from the stage of importing raw materials to production, packaging, and consumption on the market.

This group uses two accounting systems (one for internal accounting and one for tax declaration and payment) to reduce the amount of tax payable, causing tax losses to the State.

Police determined that the suspects used the trick of printing on the packaging and labels of products as imported from the US, Europe... but in reality, they were mainly imported from China and bought illegally on the market.

Regarding quality indicators, many components only achieved less than 30% of the announced standards. When suspected of being investigated, the suspects dispersed and destroyed raw materials and products, and closed the factory.

The consumers that this group aims to sell products to are mainly focused on the elderly and children.

Searching warehouses and a number of business establishments, the Ministry of Public Security seized an exceptionally large quantity of functional foods, diverse in types, widely distributed throughout the country, with a total of about 100 tons of functional foods seized.

The Ministry of Public Security's Investigation Police Agency is urgently investigating, consolidating documents and evidence to clarify the criminal acts of the defendants and expand the investigation of the case.