The People's Court in HCM City yesterday began the first hearing on the case of property misappropriation and violation of lending regulations, amounting to losses of VND420 billion (US$18.8 million).

The five indictees at the hearing. Long and Nhan were charged with deception and property misappropriation. Khuong, Dat and Huan were charged with violating lending regulations. — Photo tienphong.vn

According to the indictment, Ngo Thanh Long, 38, from 135/16 Nguyen Cuu Van Street, Ward 17, Binh Thanh District, HCM City, is the owner of Long Quan Company, Me Kong Company and Me Kong 79 Company, all of which operate on capital borrowed from commercial banks and a personal loan.

In 2008, Long requested Le Hien Nhan, chief accountant of Long Quan Company, to adjust the accounting books to reflect a profit of VND2 billion ($90,000) in the income statement instead of the recorded loss of VNN18 billion ($810,000).

Long then prepared documents to apply for a VND120 billion ($5.4 million) loan from the Can Tho branch of Vietcombank and a VND80 billion ($3.6 million) loan from the Can Tho branch of Bank of Investment and Development of Viet Nam (BIDV).

Long was then unable to repay these debts, amounting to losses of VND72 billion ($3.2 million) for Vietcombank and VND80 billion ($3.6 million) for BIDV.

In addition, Long had produced fake documents with the help of Nguyen Hai An, an investor in the River Garden high rise construction project, to borrow more money from other banks.

Long misappropriated another VND266 billion ($12 million) from the HCM City branch of Techcombank and VND43.8 billion ($2 million) from MSB Sai Gon.

Long and Nhan were charged with deception and property misappropriation, while Nguyen Hai An is still at large.

Le Duy Khuong, former head of the Transaction Office of the Go Vap branch of MSB Sai Gon; Ma Quoc Dat, former credit officer of the same branch; and Nguyen Nam Huan, former officer of corporate banking services at the HCM City branch of Techcombank, were charged with violating lending regulations.

The court is expected to announce the verdict on February 29. 

VNS