Supreme Court rejects appeal of distribution company whose chairman declared virtual capital

The police investigation agency served the decisions to prosecute the case and prosecute the accused against Nguyen Huu Kha and Dinh Van Tao in early 2024 - Source: CAHG

End of investigation, prosecution recommended

According to the decision, the investigation process has collected enough evidence and documents proving that the defendants Dinh Van Tao and Nguyen Huu Kha (two former chairmen) used fraudulent tricks, inflated charter capital, and created fake documents to turn Top One into a public company.

These two men also rationalized documents to publish false information about Top One's business capital contribution situation, and sold fake shares to investors on the stock exchange to appropriate assets.

The Supreme People's Procuracy affirmed that the defendants' actions constituted the crime of "fraudulent appropriation of property" under Article 174 of the Penal Code.

Therefore, the decision to change the previous decision to prosecute the criminal case (dated December 10, 2024 by the Investigation Police Agency of Ha Giang Provincial Police) and the decision to resolve the complaint (dated January 19, 2025 by the People's Procuracy of Ha Giang Province) is well-founded and in accordance with the law.

The Supreme People's Procuracy decided not to accept Top One's complaint and upheld the decision to resolve the complaint of the Ha Giang Provincial People's Procuracy.

On May 20, Top One also announced that it had received a notice of the end of the criminal investigation from the Investigation Police Agency of Ha Giang Provincial Police.

Accordingly, on May 5, 2025, the Investigation Police Agency of Ha Giang Provincial Police completed the investigation and transferred the entire case file of "fraudulent appropriation of property" to the People's Procuracy of Ha Giang Province.

The case occurred at Top One Distribution Joint Stock Company between 2015 and 2022 and the investigation agency proposed to prosecute the defendants: Dinh Van Tao, Nguyen Huu Kha, Do Xuan Long and Vu Thai for the crime of "fraudulent appropriation of property" under Clause 4, Article 174 of the Penal Code.

From distribution to investing in 'ghost' companies

Top One was established in 2013, with initial charter capital of 3 billion VND and listed TOP shares on UPCoM since July 2015.

By 2016, the company increased its capital to VND253.5 billion and then expanded into investment and production; including some notable deals such as spending VND243.2 billion to become the parent company of Nam Ha Vegetable, Fruit and Herb Processing Joint Stock Company.

This unit is introduced as having an ice processing and manufacturing factory, a fruit and vegetable processing line, a gas station, and a ferry terminal.

In addition, in 2020, Top One divested part of its investment capital at Ha Giang Forestry and Foodstuff Joint Stock Company and focused on investing in Ha Giang 1 Livestock Joint Stock Company and Ha Giang 2 Livestock Joint Stock Company.

But after investigation, the leaders learned that these were also ghost companies "to legitimize the amount of 243.2 billion VND that Mr. Dinh Van Tao and Nguyen Huu Kha, former chairman of the board of directors of the company, had colluded to embezzle from the company from 2018 to present".

At the end of 2021, Top One's leadership said: "We also went to team 9, Nam Dien commune, Nghia Hung district, Nam Dinh province to learn (about Nam Ha Company - PV) and found out that this is a ghost company."

Top One's current leadership hopes to take legal measures to quickly recover the embezzled money; improve the personnel structure and restructure to return to business operations, and continue to deploy distribution activities for products and goods (prioritizing traditional products).

Top One introduces itself as one of the prestigious distributors in the field of consumer products distribution, with a wide operating system in Hanoi and the Northern provinces. This is a level 1 agent distributing products of Tribeco Beverage Joint Stock Company, Trung Nguyen Coffee Company, Kim Anh Tea...

HONG PHUC

Source: https://tuoitre.vn/vien-kiem-sat-toi-cao-bac-khieu-nai-cua-cong-ty-phan-phoi-co-chu-tich-ke-von-ao-20250521234427714.htm