Pham Thi Hoa, former chairwoman of the famous Vietnamese healthcare company, Sen Tai Thu, has been arrested on charges of fraudulent appropriation of assets.
Hanoi police have also detained Hoa's daughters Nguyen Thi Thuy Linh and Nguyen Thi Lan Huong under the same charge.
From 2018 to May 2023, the company recorded large debts and was at risk of insolvency. Taking advantage of the reputation of the Sen Tai Thu healthcare brand, the company inflated its charter capital and used false data about its revenue and profit to raise capital illegally.
Initial investigations found that 100 share purchase contracts worth about VND1 trillion ($40.73 million) were signed. The chairwoman and her daughters paid commissions of 7-30% to subordinates and sales teams for raising the money.
Further details about the case have not been made available yet.
Hanoi police are expanding the investigation to clarify the roles of others involved in the case.