The former director of the Hai Phong City Police Department appeared in court on Wednesday for the start of his first-instance fraud trial.

Do Huu Ca and 12 other defendants are charged with offenses including fraud, tax evasion, and illegal invoice trading.

Proceedings began on April 10 at the People's Court of Quang Ninh Province.

Ca faces charges of fraudulent appropriation of assets while Truong Xuan Duoc and his wife Nguyen Thi Ngoc Anh are accused of 'illegal trading of invoices and documents for State budget collection' and 'offering bribes'.

Nguyen Dinh Duong and Do Thanh Hoai, former officials of the Cat Hai District Tax Department, are indicted for ‘accepting bribes’.

Others facing charges include Dang Khac Thanh, Ha Thi Bich Nhan for 'illegal trading of invoices and documents for State budget collection', and Ha Thi Trang, Do Thi Dua, Vu Ngoc Tu, Chu Thi Thu Hien, Nguyen Hien Tai, Ngo Van Declaration for 'tax evasion'.

The People's Court of Quang Ninh Province has summoned 21 individuals as witnesses in the case.

According to the charges, Duoc and Ngoc Anh operated the Khanh Dung Joint Stock Company since 2007, specializing in illicit trading of value-added tax invoices. Ngoc Anh, as the company's chief accountant, managed tax declarations, legalized documents and facilitated the establishment of other firms under Duoc's instructions.

Between 2014 and 2021, they established 26 additional companies for illegal invoice trading, using their IDs and those of others. Duoc purchased input invoices monthly from Bui Huy Hop and others, paying 5 to 6 per cent of the stated goods or services value for tax declaration.

In 2018, Hop's arrest led Duoc to limit invoice purchases and establish 11 companies as cover. Investigations revealed that from March 2013 to May 2022, they traded 15,674 invoices, earning an unfair amount of VND41.2 billion (US$1.65 million).

Around October 2022, upon hearing of his grandson Truong Van Nam's investigation for illegal invoice trading, Truong Xuan Duoc fled. He included his wife to seek help from Ca, a former director of the Hai Phong City Police Department, to evade charges.

Ngoc Anh then briefed Ca on their predicament, seeking his assistance in evading charges and promised to cover any expenses as per Ca's instructions.

During their exchanges, Ca discovered that the Pacific Company, managed by Duoc's family, had a sales revenue of around VND200 billion ($8.01 million). Although Ca did not take any steps to assist Duoc, he directed Ngoc Anh to prepare 10 per cent of the company's sales revenue and additional funds for evading charges.

From October 2022 to December 2022, Duoc and his wife visited Ca's residence in Kenh Giang Commune, Thuy Nguyen District, Hai Phong City, four times, delivering a total of VND35 billion ($1.4 million).

Despite these payments, there was no response. Before the Lunar New Year in 2023, Duoc and his wife visited Ca once more to inquire about the progress of their efforts to evade charges.

Duoc's effort to escape the sentences failed, as he was approved by the Quang Ninh Police on February 3, 2023, for illegal invoice trading. Following Duoc's arrest, Ngoc Anh visited Ca's residence seeking an update and the return of the money given to Ca, but the retired police chief neither returned the money nor offered assistance, instead reproached Ngoc Anh and dismissed her.

On February 7, 2023, the police arrested Ngoc Anh, and eleven days later, Ca was arrested and detained on charges of "fraudulent appropriation of assets."

During the investigation, Ca admitted to receiving money from Duoc and his wife but claimed that he had not influenced any individuals or authorities to evade charges.

During the investigation, the accused returned over VND40 billion ($1.6 million), which includes the VND35 billion returned fully by Ca.

The trial, presided by judge Bui Van Tuan of the Quang Ninh People's Procuracy, is expected to last three days. — VNS