Hai Phong Police on June 1 announced the arrest of BBG Company director Le Minh Quang on suspicion of fraud and for allegedly participating in illegal online gold transactions.

Quang was caught while trying to flee to Laos following a police investigation into his company, which specialises in organising online gold trading activities without a licence and fraud, according to Colonel Pham Duy Dien, head of the city police’s office.

The initial investigation revealed that BBG has four affiliates and 14 branches operating in 11 provinces and cities and their key business sectors are trading gold online, holding money for clients at an interest rate of 1.5 percent each month and over, and financial investment.

According to the police, since its establishment in March 2015 the total money transferred to BBGs’ accounts and Quang’s individual account totalled 547 billion VND (roughly 25 million USD).

All money had vanished from the accounts at the time Quang was arrested, according to police, and BBG was accused of illegal business practices and using computers, telecommunications devices and internet networks to con people.

On May 24, border guards at the Lao Bao border gate in the central province of Quang Tri reported that it had captured Quang while he was attempting to flee to Laos.

Quang confessed that from 2011 to June 2014, BBG operated as an account gold broker for a number of companies. Despite failing to gain a licence, BBG still operated and brokered 200 investors to maker gold transactions totalling around 10 billion VND, which was shared between Quang and his partners.

At the end of 2013, BBG opened its own online gold trading without any licence.

In addition, BBG lured people to put their money in the company for gold trading.

Pham Manh Cuong, head of BBG’s representative office in Hai Phong; Luong Thi Lien, the office’s accountant; and Nguyen Hong Quyen, an employee have also confessed to criminal actions. They have told police that the office lured 20 investors to invest a total of 300 million VND into their advertised online gold trading while over 100 others entrusted them with around 70 billion VND. They pocketed 700 million VND and money and relevant documents were transferred to Quang.

Hai Phong police has launched criminal proceedings against Quang and is conducting further investigation into the case.

VNA