The People’s Procuracy of Hanoi has determined that the mother and daughter who formerly led Sen Tai Thu Group, along with a former executive, must repay more than VND757 billion (US$30.7 million) to 266 out of 459 identified victims.

As previously reported by VietNamNet, the People’s Procuracy of Hanoi has finalized its indictment against Pham Thi Hoa, former Chairwoman of the Board of Directors of Sen Tai Thu Group JSC; Nguyen Thi Thuy Linh, Hoa’s daughter and former Deputy General Director of the group; and their accomplices on charges of Fraudulent Appropriation of Property and Money Laundering.

According to the indictment, from 2019 to May 16, 2023, the defendants mobilized more than VND4,719 billion (US$191 million) from various sources. Of that amount, over VND1,726 billion (US$69.9 million) was raised from 459 investors through share transfer contracts; about VND896 billion (US$36.3 million) came from personal loans; the remainder was borrowed from banks and other individuals.

To date, 266 victims have filed complaints, reporting that they transferred more than VND971 billion (US$39.3 million) to Sen Tai Thu Group under share transfer agreements. They were repaid more than VND213 billion (US$8.6 million) by Hoa and her accomplices, leaving more than VND757 billion (US$30.7 million) allegedly misappropriated.

Victims told investigators they had been persuaded by group employees or bank staff to invest, lured by promises of interest rates higher than prevailing bank rates, ranging from 10 to 15 percent per year depending on the investment term. The company pledged to repay both principal and interest in full and on schedule.

Trusting those assurances, the investors transferred funds to the group and later found their money appropriated. They have demanded that Pham Thi Hoa, her daughter Nguyen Thi Thuy Linh, and Nguyen Thi Lan Huong, former General Director of Sen Tai Thu Group, return their funds.

Regarding civil liability, the People’s Procuracy of Hanoi concluded that Hoa, her daughter, and Huong must jointly repay more than VND757 billion to 266 of the 459 victims.

As for the remaining 193 investors, the investigative agency has repeatedly publicized information about the case in the media. However, these individuals have yet to come forward to provide statements.

As a result, authorities have not been able to determine the actual amounts they contributed to Sen Tai Thu or their specific requests concerning criminal handling and civil compensation. Should they submit claims, their cases will be addressed under civil procedure regulations.

The indictment states that by December 2022, Sen Tai Thu Group had become insolvent. Many customers were unable to recover their principal and interest and were required to sign new contracts reflecting a reinvestment amount equal to the original principal plus accrued interest from previous agreements.

In late 2022, Tran Tuan Anh, born in 1990 and residing in Hanoi, sought to invest in Sen Tai Thu. He discussed with Hoa and her daughter the signing of a conditional loan agreement with a credit limit of VND50 billion (US$2 million).

One condition required that Tuan Anh be appointed General Director and legal representative of Sen Tai Thu Group. During the term of the loan agreement, he would not participate in day-to-day management but would have supervisory rights and receive reports related to operations and the business performance of branches.

He was also permitted to conduct market research and open new business establishments under a different legal entity using the Sen Tai Thu Viet Nam brand, and to invite investors and partners to participate in the new ventures.

Under this agreement, from December 20, 2022 to April 22, 2023, Tuan Anh transferred more than VND30 billion (US$1.2 million) to Hoa and her daughter as loans. After taking over the group, he reviewed its financial records and estimated that as of May 2023, debts owed to investors amounted to more than VND1,021 billion (US$41.3 million).

He invited investors to the company for dialogue and proposed restructuring their shareholdings, converting shares in Sen Tai Thu Group into shares of other companies within the group’s system.

Proceedings authorities determined that from May 2023 to the present, Tuan Anh has used VND25 billion (US$1 million) from funds generated under the share transfer contract with Hoa to repay 120 investors.

According to his testimony, when he invested in Sen Tai Thu Group JSC, he was only aware that Pham Thi Hoa and her daughter owed approximately VND300 billion (US$12.1 million). He said he was unaware of the company’s debts to investors.

Investigators concluded that Tran Tuan Anh did not conspire with Hoa and her daughter to appropriate investors’ funds and therefore is not considered an accomplice in the Fraudulent Appropriation of Property charge. His loan to Hoa and subsequent share transfer agreement were deemed civil transactions and are not subject to criminal handling in this case.

T. Nhung