The Ministry of Public Security’s Investigation Agency has completed its probe into Phuc Son Group, uncovering a vast financial fraud scheme orchestrated by the company’s chairman, Nguyen Van Hau, also known as Hau "Phao."

Authorities revealed that between 2011 and 2022, Hau "Phao" directed the sale of 1,317 land lots across four real estate projects, earning more than 3,540 billion VND. However, over 2,072 billion VND ($84 million) was kept off the books to evade financial obligations and tax payments.

Investigators discovered that Hau, along with his sister Nguyen Thi Hang (Deputy General Director) and key financial staff, operated two separate accounting systems. One was used for official tax reporting, while the other tracked under-the-table payments from land buyers, effectively concealing large sums from tax authorities.

A forensic audit confirmed that Phuc Son Group's accounting practices resulted in state losses exceeding 504 billion VND ($20 million) in unpaid corporate income tax and value-added tax (VAT).

The fraudulent scheme involved signing 314 contracts, issuing 859 receipts, and 463 VAT invoices to disguise land sales. Buyers were required to make two payments: one recorded in official contracts and another undocumented amount, allowing the company to underreport its revenues and minimize tax liabilities.

Hau "Phao" allegedly collaborated with Tran Huu Dinh, Director of Nam A Company, to facilitate these land deals. Dinh’s real estate firm, operating in Vinh Tuong, Vinh Phuc, managed transactions where purchase prices were deliberately understated in official contracts, reducing tax obligations.

Dinh personally handled 345 land sales, collecting over 1,417 billion VND from buyers. Out of this, more than 1,089 billion VND ($44 million) was kept off the books, further increasing state losses. In return for his role, Dinh received 5 billion VND ($200,000) in commission payments.

As the investigation concludes, Hau "Phao" faces prosecution on multiple charges, including violating accounting regulations, rigging bids, and bribery. Authorities continue to examine the full extent of financial misconduct within Phuc Son Group.

T. Nhung