$1.23 billion, 42,000 investors: property developer Van Thinh Phat accused of fraud

HCMC-based property developer Van Thinh Phat Group and several other firms misappropriated over VND30 trillion ($1.23 billion) from 42,000 investors via fraud in bond issuance, investigators have concluded.

The conclusions were announced at a press conference early this week by Major General Nguyen Van Thanh, deputy director of the Investigation Police Department for Corruption, Smuggling and Economic Crimes (C03), under the Ministry of Public Security.

Property developer An Dong Investment Group JSC and related organizations and units are implicated in the case involving "fraudulent appropriation of assets."

As the number of victims is very large, the investigative agency has entrusted police forces in various localities to work with investors who bought bonds issued by the developer.

It has recommended that investors work with the investigative agency soon to provide information and documents regarding bond purchases to have their legitimate rights and interests protected.

The agency had earlier issued a notice to find victims in the case.

According to the investigation results, from 2018 to 2020, Van Thinh Phat Group, An Dong Investment Group JSC, Quang Thuan Investment JSC, HCM City Commercial Services JSC, Sunny World Investment and Development JSC and other organizations conducted fraudulent activities, deceiving a great number of individuals.

They created 25 bond packages with a total value of VND30.08 trillion ($1.23 billion) and misappropriated the buyers’ money.

The bond codes associated with this case are ADC-2018.09, ADC-2018.09.1, ADC-2019.01, QT-2018.12.1, SNWCH1823001, and SET.H2025.01 to SET.H2025.20.

The C03 investigators have determined that the buyers of these bond packages are victims in the case and asked concerned provincial and municipal police departments to gather more information and record testimonies per law.

They have also urged those who hold bonds from the 25 packages mentioned above to promptly provide information, documents and related contracts to competent authorities.

“Failure to do so may result in the bondholders’ rights and interests being disregarded,” they have cautioned.

Last October, Truong My Lan, chairwoman of Van Thinh Phat Group, was arrested for alleged fraud in the issuance and trading of corporate bonds in 2018 and 2019.

Facing the same charges are Truong Hue Van, 34, CEO of HCMC-based Windsor Real Estate Management Group JSC; Nguyen Phuong Hong, 38, an Van Thinh Phat employee; Ho Buu Phuong, 50, former chairman of Tan Viet Securities and former Deputy CEO in charge of finance at Van Thinh Phat.

Lan, 67, also known as Truong Muoi, is a Chinese-Vietnamese businesswoman and a billionaire. Her husband is a wealthy real estate tycoon living in Hong Kong. In mid-2014, Lan and nine family members simultaneously applied for renunciation of their Vietnamese citizenship.

She established Van Thinh Phat Co., Ltd. in 1992, first operating in commerce, restaurant and hotel businesses; then expanded to real estate. Van Thinh Phat Group JSC is known for owning major property projects and buildings in premier locations in HCMC, Vietnam’s southern economic hub.