Nguyen Van Dung, chairman of the Hanoi-based Gia Nguyen Group Vision Joint Stock Company, has been charged with appropriating VND78 billion ($3.2 million) from 400 people by promising them high interest rate returns.
Hanoi police are looking for more victims of the "fraudulent appropriation of property" case that occurred at Gia Nguyen Group Vision JSC in Hanoi’s Ha Dong district.
According to the police, Nguyen Van Dung, 40, residing in Ha Dong district, founded Gia Nguyen Group Vision JSC in 2008 and serves as its chairman and CEO.
Dung advertised that his business was implementing a sharing economy project with GNG Media, installing GNG-branded LCD advertising screens at locations nationwide and using applications to run ads on the above screens to sign advertising contracts with businesses in demand.
He mobilized investments, with a commitment to pay 5% interest rate per LCD value per month. Each LCD advertising screen was worth VND38 million ($1,550). He vowed to pay interest continuously for 24 months and refund the principal after the cooperation contract expired.
To attract investors, Dung organized seminars and opened classes under a multi-level model, in which previous investors invited new ones to join the network to enjoy 5-12% of the contribution amount.
The police determined that from October 2021 to April 23, 2022, 400 individuals signed 504 business cooperation contracts with Gia Nguyen Group Vision JSC, with total capital of more than VND78 billion ($3.2 million).
According to the police, all of Dung's advertisements were false. After receiving money from investors, he paid the debt and interest to the previous investors, employee salaries, house and car rents; contributed capital to other firms to implement projects; and paid for personal expenses.
Now he is no longer able to pay and cannot fulfill his commitments to investors.
The police confiscated 231 screens during a search of Dung's company.
Dung confessed he had bought the screens online, installing them under the GNG brand in public places and shopping centers.
During the investigation, the police recorded the testimonies of 156 victims. They accused Dung of appropriating more than VND30 billion ($1.22 million).
The chairman of Gia Nguyen Group Vision JSC was later charged with "fraudulent appropriation of property".