VietNamNet Bridge – Hundreds of households in the central province of Binh Thuan's Tanh Linh and Duc Linh districts were allegedly cheated by a multi-level marketing company.
The Tay Thanh Trading Corporation used several websites, including giaodichtructuyen.com.vn, nhadattaythanh.com and vionline.vn, to persuade local people to part with their earnings.
To make an account, site visitors had to pay VND3 million (US$140). According to the model, they would then earn money for inviting others to create accounts. If a participant got two more people to join the website, he or she was supposed to receive VND5 million ($240); getting five more people to join would be rewarded with VND8 million ($380).
Believing the company's claim that participants could earn millions of dong in a few months, local residents borrowed money to pour into the scheme. Many even mortgaged their houses and property.
However, no one received a single penny.
Nguyen Thi Hien, a resident in Duc Hanh Commune, Duc Linh District, said that the company had promised participants a contract that never materialised.
In one year, Hien invested nearly VND50 million ($2,380) in the website. Based on the company's promises, she should have received VND100 million ($4,760) but she instead found herself with nothing for her efforts.
When people started demanding money from the company, director Pham Van Hoan pledged to repay their investments, but local residents can no longer contact him, Hien said.
Most people who participated in the scheme transferred their money into Hoan's account, rather than the company's.
In Duc Linh District alone, hundreds of people joined these websites, earning Hoan billions of dong. Many households in Tanh Linh District are currently in the same boat.
Viet Nam News could not reach Pham Van Hoan for comment.
Source: VNS
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