Nguyen Ngoc Thuy, better known as “Shark Thuy,” has been accused of being primarily responsible for defrauding more than 10,000 investors of over 7.677 trillion VND, while having reimbursed only about 2 billion VND, according to an indictment filed by the Supreme People’s Procuracy.

Thuy, Chairman and CEO of Egroup JSC and Egame Investment and Distribution JSC, faces charges alongside 28 other defendants for bribery, fraud, and embezzlement.

Unauthorized share sales and concealed revenue

Between 2015 and 2023, although Egroup’s charter capital was only 32 billion VND (equivalent to 3.2 million shares), Thuy allegedly directed the sale of more than 209 million shares to over 10,000 investors under 26,354 contracts, collecting 7.765 trillion VND.

Of these, only 3.2 million shares corresponded to legitimate capital and were sold to 60 investors, leaving an outstanding debt of 87 billion VND. The remaining 206 million shares were sold without authorization, generating 7.677 trillion VND in unreported income. None of this was reflected in the company’s tax filings or financial statements.

Investigators found that from late 2020, Thuy instructed subordinates to use 70% of new funds to pay interest and principal on earlier contracts, mirroring a Ponzi-like structure to delay exposure. The remaining 30% was allegedly used to pay personal and corporate debts, rent, and channeled into companies either owned by Thuy or held under associates’ names to inflate personal equity.

With no remaining capital, Egroup and Egame became financially insolvent and unable to repay investors.

Thousands of victims, billions unrecovered

Authorities determined that Thuy bears principal responsibility for misappropriating 7.677 trillion VND from 10,063 victims. To date, he has reimbursed only 2 billion VND.

Investigators also uncovered other fraudulent fundraising schemes under Thuy’s direction, including bond issuance, business cooperation contracts, English center restructuring deals, and tuition collections.

The Ministry of Public Security received a total of 3,279 complaints involving additional funds:

1,249 complaints related to bond sales worth 1.6 trillion VND
1,102 complaints involving “cooperation contracts” worth 535 billion VND
309 complaints tied to “English center restructuring” worth 101 billion VND
619 complaints involving tuition payments worth 29 billion VND

Because the investigation period expired, these additional cases have been separated for continued inquiry under existing legal procedures.

Corporate oversight and regulatory findings

Egroup was first registered in September 2008 with 32 billion VND in charter capital. By December 2016, the company declared an increase to 962 billion VND.

Investigators found no direct wrongdoing by officials at the former Hanoi Department of Planning and Investment (now the Hanoi Department of Finance) in approving the capital increase. However, the Ministry of Public Security recommended stronger monitoring of corporate activities and more frequent audits of large enterprises operating in the city.

The case against Nguyen Ngoc Thuy and 28 other defendants is among the largest financial fraud prosecutions in Vietnam in recent years, involving complex corporate structures and widespread investor losses.

T. Nhung