The chairman and general director of VietnamCapital Finance JSC have been detained by Danang police pending further investigation into their illegal mobilization of VND200 billion ($8.22 million) in deposits.
Chairman Le Trong Linh, 34, and general director Truong Quoc Thai, 37, are suspected of “fraudulent appropriation of property.”
Although VietnamCapital Finance JSC is not a credit institution and does not have the function of mobilizing deposits, it put out a lot of fake information to receive deposits illegally, a police statement said.
Linh and Thai opened many transaction locations in Danang to mobilize people's money, it added.
Using the carrot of paying interest rates higher than at commercial banks, the pair succeeded in convincing many people in the city and neighboring Quang Nam province to make deposits.
The investigative agency under the municipal police department has determined that there are hundreds of victims in the case, with the appropriated amount reaching VND200 billion ($8.22 million).
The police said they have raided the residences and workplaces of Linh and Thai and seized many documents.
The municipal police have taken the opportunity of the arrests to warn residents that they should exercise caution and closely scrutinize information about organizations before deciding to trust them with cash deposits.