The Ministry of Public Security’s Investigation Police Agency has concluded the investigation into the gold smuggling case involving Vietnam Gold Investment and Trading Joint Stock Company (Vietnam Gold Company), based in Lao Cai province.

The police have recommended prosecution for 11 individuals. Among them, Tran Nhu My (Chairwoman of the Board of Directors), Phung Thi Thuyet (Deputy General Director), and Nguyen Thi Hop (Chief Accountant) are facing charges of “violating accounting regulations causing serious consequences.” The remaining eight defendants are facing charges of smuggling.

According to investigators, from September to December 17, 2024, defendant Tran Thi Hoan, 40, based in Lao Cai, conspired with an individual known as “Ba Beo” and Pham Tuan Hai, 55, former Director of Thang Long Trading and Services Co., Ltd., to operate two gold smuggling routes through Lao Cai International Border Gate.

Hoan purchased over 97.3kg of gold worth approximately $8.3 million from “Ba Beo” and another 449kg of gold, worth over $40 million, from Pham Tuan Hai.

To smuggle the gold, “Ba Beo” and Hai hired couriers to receive the gold in China, conceal it on their bodies or in their shoes, and carry it across the Lao Cai border into Vietnam. The gold was delivered to the headquarters of Hoan Hue Company, where staff weighed the gold and used heat tools to erase foreign markings from the bars.

They tracked the shipments using spreadsheets, then transported the altered gold to clients in Hanoi.

Accounting fraud leads to serious financial losses

Investigators revealed that at Vietnam Gold Company, defendants My and Thuyet directly negotiated and arranged the sale of raw gold to multiple clients. Many of these gold sources lacked proper invoices or legal documentation.

My and Thuyet instructed accounting staff to exclude these transactions from tax reports, recording them only in internal gold management software.

Payments were made in cash or transferred through bank accounts belonging to 30 friends and family members of the accused. These transactions were then handed over to sales personnel or treasurers for management.

For transactions with legitimate invoices, they were recorded in the official Vacom system and paid through company accounts. All undocumented transactions were excluded from tax declarations.

Authorities determined that Tran Nhu My, as chairwoman of the company, orchestrated the use of two separate accounting systems, manipulated financial statements, and omitted real revenue in tax filings, causing over $208,000 in state losses through unpaid value-added tax (VAT) and corporate income tax.

Phung Thi Thuyet, in her role as deputy general director, was directly in charge of operations and helped coordinate transactions through private accounts. She also instructed Nguyen Thi Hop to omit undocumented transactions in tax filings, contributing to reduced company revenues, profits, and state tax liabilities.

Nguyen Thi Hop, as chief accountant, was responsible for accurate and transparent financial reporting. However, following instructions from My and Thuyet, she selectively recorded transactions with invoices in the Vacom software, tracking undocumented deals only in internal systems. She also signed off on false tax and financial reports, hiding real revenue and contributing to the same state losses.

T. Nhung