Popular Vietnamese TikToker arrested for fraud, police seize $197 mln assets

Pho Duc Nam, a popular TikToker known as Mr Pips, has been arrested for allegedly masterminding a network to scam investors out of their money.

The arrest came after authorities had discovered a scheme based on securities brokerage models that manipulated countless individuals and deprived them of large sums of money.

Mr Pips, who boasts hundreds of thousands of followers on TikTok and YouTube, gained fame for showcasing his lavish lifestyle and offering investment tips in the world of finance.

His social media presence painted an image of wealth and success, luring many to trust his financial advice and join his investment groups. However, this glittering facade concealed a much darker reality, as investigators have revealed.

The Ministry of Public Security has launched criminal proceedings against Nam (30, residing in the southern province of Ba Ria-Vung Tau), along with Le Khac Ngo (34, residing in Hanoi) and 24 other individuals, on charges of fraudulent appropriation of property, money laundering, and failure to report criminal activities.

The suspects allegedly used an elaborate scheme to deceive investors by promoting fake trading platforms and fraudulent investment opportunities.

According to investigators, the scam began in June 2019, when Nam and Ngo established a fake securities brokerage network. They utilized accounts of many “shell” companies and e-wallets to collect money from customers.

They invited clients into private chat groups, where they coached them on depositing and withdrawing funds to build trust. Once the victims were hooked, they were encouraged to make larger investments, often using leverage to trade on platforms manipulated by the suspects. The goal was to cause rapid account depletion, leaving victims with empty wallets.

When victims lost all their money, the scammers promised to help them recover their losses by moving them to a new platform. The promise of a fresh start was often enough to entice victims to invest again, only to be defrauded once more.

The fraudsters went so far as to create a fake website, artexvina.co, recruit employees and present themselves as a legitimate investment consultancy offering professional advice on international stock trading.

The website boasted numerous branches across Vietnam and even Cambodia. They created departments involving IT, support, and security, and trained a team to approach potential clients, drawing them into the scam with promises of high returns on investments in major multinational companies, including Facebook, Apple, and Microsoft.

In an operation to dismantle the fraud network, police seized assets worth over VND5 trillion ($197 million) of the suspects. These included VND127 billion in cash, savings of VND306 billion, 216 kilograms of gold, 128 properties, 30 vehicles, and bonds worth VND9 billion. The investigation is ongoing, with Hanoi prosecutors and police working to expand the case further.

Behind a successful trader

Born in 1994, Pho Duc Nam, better known as Mr Pips, was only 30 years old at the time of his arrest. He rose to prominence in the world of social media, particularly on TikTok, where he became known for his flashy lifestyle and financial tips.

Despite his young age, Mr Pips gained a substantial following, offering videos on complex financial topics, investment strategies, and forex trading.

Mr Pips cultivated an image of a successful trader, frequently showcasing luxury cars, expensive watches, and high-end vacations - symbols of wealth that further solidified his reputation. He was even seen as a role model for young investors eager to follow in his footsteps.

But behind the scenes, Mr Pips was allegedly orchestrating a sophisticated scam. He used his social media platforms to build trust with followers, offering what seemed like valuable insights into trading and investment. His investment groups on Telegram, where he gathered about 20,000 members, promised insider knowledge and guaranteed returns. He also ran online courses on forex trading, market analysis, and how to make smart investment choices.

However, in the past two months, Mr Pips’ social media presence vanished without a trace. His TikTok account went silent, and his YouTube channel disappeared. It was only later that the news broke - Nam had been arrested, and the scale of his alleged fraud began to unfold.

While some investors in the community were shocked by the news, others were less surprised. Many had grown skeptical of his claims, suspecting that Mr Pips was simply using his platform to manipulate others for financial gain.

Some pointed to his association with the GFTK trading platform, which was recently shut down by authorities, as further evidence of his fraudulent activities.

The tech community pointed out that behind the glittering image, Nam, under the guise of Mr. Pips, exploited people's trust to continuously "scam" them through courses, raised funds from users by promoting "trusted" stocks, cryptocurrencies, forex, and trading platforms he and his accomplices created. The seized assets worth over VND5 trillion ($197 million) serve as proof of this fraud.