Tan Hoang Minh Group’s chairman and general director, Do Anh Dung, is accused of committing fraudulent practices in nine corporate bond issues worth a total of VND10.3 trillion.

He allegedly took advantage of three affiliates – Viet Star Real Estate Investment Company Limited, Soleil Investment and Hotel Services Joint Stock Company, and Winter Palace JSC – to conduct the nine bond issues to raise funds from investors in the period between July 2021 and March 2022. The money was not used for the purposes stated in the bond sale documents, said local news reports.

The other six detained by the police today are Do Hoang Viet, deputy general director of Tan Hoang Minh Co. Ltd.; Nguyen Manh Hung, chairman of Viet Star Real Estate Investment and deputy general director of Tan Hoang Minh Co. Ltd.; Tran Hong Son, chairman of Soleil and deputy general director of Tan Hoang Minh Co. Ltd.; Nguyen Khoa Duc, chairman and director of Winter Palace; Le Van Thinh, deputy general director of Tan Hoang Minh Co. Ltd.; and Phung The Tinh, former director of the Accounting and Financial Center of Tan Hoang Minh Co. Ltd.

Do Hoang Viet is a son of Tan Hoang Minh Group chairman Do Anh Dung.

One day before the above arrests, the State Securities Commission of Vietnam announced a decision to cancel the nine bond issues by Viet Star, Soleil and Winter Palace because of misinformation and failures to disclose information about private placements.

Tan Hoang Minh Group, a major property developer based in Hanoi, made big headlines late last year when one of its affiliates, Viet Star, won an auction for a 10,060-square-meter land lot in Thu Thiem New Urban Area in HCMC for VND24.5 trillion, or VND2.45 billion per square meter. This price is way above the normal market level.

Later, Viet Star cancelled its contract with HCMC to buy the land lot.

Source: Saigon Times