Hanoi businesswoman arrested in $52 mln 'virtual' ginseng fraud

Pham My Hanh, chairwoman of Hanoi-based My Hanh Group JSC, has been detained in a VND1.26 trillion ($51.8 million) fraud involving false information about ginseng cultivation.

The arrest was announced Friday by Hanoi's Cau Giay district police, who said the case fell under Article 174 of the Penal Code dealing with "fraudulent appropriation of property."

The police alleged that Hanh, who founded My Hanh Group JSC on August 14, 2017, raised more than VND1.26 trillion after claiming that the company had invested in a project to plant Ngoc Linh ginseng in several provinces and cities, promising high profits.

She used part of the money to pay interest to investors, the police added.

The police confiscated many documents and other items related to the case in a Thursday raid on her residence and workplace.

Ngoc Linh ginseng (Panax vietnamensis, or Vietnamese ginseng), a rare medical root containing 52 saponin compounds, was found on Ngoc Linh Mountain at the boundary between Kon Tum and Quang Nam provinces in the late 1960s.

Besides saponin, Ngoc Linh ginseng contains 17 amino acids, 20 trace minerals and 0.1% of attar.

Ginseng is said to have anti-aging and anti-stress properties, improve immunity, enhance liver function and lower cholesterol. It has also been said that it can be safely taken alongside antibiotics and diabetes medications.

Considered one of the world’s most precious roots, ginseng was approved as a product of national importance by the Prime Minister’s Decision 787/QD-TTg dated June 5, 2017.