Le Xuan Giang, chairman of the board of directors at Vietnam Trading-Links Production JSC, and his accomplices have been charged with defrauding and expropriating assets of 66,880 investors in 49 localities across the country, with total losses exceeding VND2 trillion, the local media reported.

Le Xuan Giang (in military uniform) is seen at an event of Vietnam Trading-Links Production JSC - PHOTO: ANNINHTHUDO.VN

The Supreme People’s Procuracy of Vietnam on September 24 transferred the case to the Hanoi People’s Court to prosecute the seven accused under Article 139 of the 1999 Penal Code.

The accused comprise Chairman Le Xuan Giang; General Director Le Van Tu; Vice General Director Nguyen Thi Thuy; and members of the firm’s market development division, Le Thanh Son, Trinh Xuan Sang, Vu Thi Hong Dung and Nguyen Xuan Truong.

According to the indictment, between March 2014 and November 2015, Giang took advantage of being granted a business license to operate a multilevel marketing scheme and provided false information to investors, leading them to believe that the firm was a subsidiary of medical equipment company BQP, under the Ministry of National Defense. In addition, they claimed that they were officers of the ministry.

Giang also asserted that his company had teamed up with prestigious enterprises and agencies under the ministry to manufacture products that had been tested and were being put to use in central State-run hospitals.

The investigation found that Giang and the other accused had asked people to falsify two decisions and 11 award certificates granted by the Prime Minister to deceive investors.

In promoting these products, which were mainly cleaning machines, healthcare equipment and health supplements, Giang and his subordinates usually wore military uniforms, while Giang wore a colonel’s insignia. In addition, he invited retired high-ranking army officers to join these events to boost the customers’ confidence.

The investigation results also indicated the accused had established attractive commission policies and large-scale promotions to lure investors. In particular, the investors could become official suppliers by funding the firm without having to sell its products. One investor could be the owner of multiple brands and could collect money from new members to pay commissions to older members.

Aside from paying commissions, they launched 15 promotional programs to boost sales. Investors could expect to be rewarded up to VND409 million if they injected VND7 million, later VND8.6 million, into the company. If the investor managed to attract new members, he or she would receive valuable gifts, such as cars, houses and overseas tours, and would be paid a high salary.

Of the expropriated money, Giang and his associates took over VND1 trillion. Giang alone obtained more than VND800 billion, while the other accused took sums ranging from VND4 billion to some VND60 billion.

SGT