The Ho Chi Minh City Police Department's Economic Police Division announced on July 7 that investigators had issued prosecution decisions and detention orders against the 12 suspects on charges of fraudulent appropriation of property. The decisions have been approved by the Ho Chi Minh City People's Procuracy.

The investigation follows a nationwide crackdown directed by the Ministry of Public Security and the city's police leadership on fraudulent schemes involving so-called holiday ownership or vacation membership contracts.

Sophisticated sales model

Investigators said they identified suspicious activities at branches of Holidays Vietnam after gathering intelligence and evidence.

Police simultaneously searched several company offices located on Le Quy Don Street, Ut Tich Street, and Pham Ngu Lao Street in Ho Chi Minh City.

According to investigators, the organization operated a highly structured scheme targeting a large number of victims.

The suspects allegedly developed an elaborate business model that included attracting potential customers, organizing lavish promotional seminars, providing misleading sales presentations and persuading clients to sign so-called holiday contracts.

After customers committed their initial payments, the group allegedly continued using deceptive tactics to pressure or entice them into making additional investments, ultimately appropriating more money.

Preliminary findings indicate that nearly 10,000 holiday contracts were signed, with total alleged losses reaching about VND900 billion (US$34.4 million).

Police have also frozen assets worth approximately VND130 billion (around US$5 million) in an effort to recover funds and minimize financial losses suffered by victims.

Alleged ringleader identified

Investigators identified Nguyen Danh Thanh as the alleged mastermind behind the operation.

According to police, Thanh designed the company's overall business strategy and developed the sales scripts used by employees in Ho Chi Minh City.

Authorities also identified Dinh Son Hai, described as the company's sales director, as Thanh's key associate.

Police allege Hai oversaw the company's sales operations and instructed management teams to aggressively pursue sales targets while carrying out fraudulent activities against customers.

Investigation continues

The Economic Police Division said investigators are expanding the case to determine the full scope of the alleged criminal operation and identify any additional suspects.

Authorities are also tracing financial transactions connected to the scheme to maximize asset recovery and protect the interests of victims.

Police have called on anyone who signed contracts with branches of Holidays Vietnam or encountered similar sales tactics to contact investigators and provide documents or information relevant to the case.

Authorities also urged the public to exercise caution when approached with offers involving vacation ownership, resort investment, or membership programs promising high returns, easy resale opportunities, rapid capital recovery or unusually generous promotional incentives.

Consumers are advised to carefully verify a company's legal status, the actual viability of projects, and ownership and operating rights before signing contracts or transferring funds.

Anyone who suspects fraudulent activity is encouraged to report it promptly to the nearest police authority.

Dam De