Ho Chi Minh City Police on Tuesday detained Tran Quang Son, general director of HSBC Vietnam Finance Group for “fraudulent appropriation of property”.
Son, together with Nguyen Tan Su and Nguyen Thuy Long Phuong, bragged about having capital of $100 billion in order to entice other firms to collaborate.
Su was the general director and legal representative of Nui Chua Company and Phuong, its finance director. Previously, both had been arrested on the same charges.
According to the investigation, at the end of 2018, Su and Phuong claimed to have good contacts with banks and could guarantee payment. They lied, saying Nui Chua in Tan Binh district had received $100 billion in foreign funds from financial investment firm HSBC Vietnam Finance Group.
A man named Khoi, who wanted to build a waste treatment facility, was introduced to Su by an acquaintance. Nui Chua's leaders then presented documents and images to this entrepreneur showing it held a large quantity of foreign capital.
Khoi agreed to cooperate on the project with a total capital of over VND2,000 billion ($86 million), with Nui Chua contributing capital by issuing a letter of payment guarantee, and holding a 70% stake.
Khoi paid $25,000 to prepare documents seeking loans as Phuong requested. Two months later, Nui Chua showed Khoi documents indicating Sacombank had agreed to a loan of VND250 billion ($10.76 million).
Khoi had to pay an extra VND1.1 billion in fees for issuance of the payment guarantee.
In April 2019, Phuong and Su showed Khoi an investment capital guarantee and credit letter, claiming HSBC Vietnam Finance Group, headed by Tran Quang Son, would be willing to disburse $250-500 million.
In September 2019, due to demand in facilitating the project, Khoi deposited another VND1 billion into Nui Chua, with Son and Phuong pledging to complete issuing of the payment guarantee letter within 30 days.
At the end of 2019, Su sent Khoi a photo of the payment guarantee letter from Sacombank regarding the approval of the payment obligation guarantee.
Required to pay fees on multiple occasions, a suspicious Khoi contacted Sacombank to verify. When the bank confirmed the documents were falsified, he tried several times to get Su and Phuong to cancel the contract and refund the money, but failed.
Su and Phuong were found guilty of having appropriated roughly VND1.6 billion ($69,000) from Khoi.
Tran Quang Son established HSBC Vietnam Finance Company and signed paperwork under the duo's direction.
The case is under further investigation.
The company's name resembles HSBC Vietnam, a wholly-owned subsidiary of HSBC Group - one of the largest banking and financial services institutions in the world.