Thuduc House scam mastermind wanted by HCMC police for usury still absconding

Ho Chi Minh City investigators said Wednesday they were still looking for Trinh Tien Dung, absconding mastermind of the Thu Duc Housing Development Corporation (Thuduc House) scam, for "committing usury in civil transactions".

Dung, 51, a resident of HCMC’s District 3, was part of a ring that lent tens of billions of VND (VND1 billion = $39,286) at interest rates as high as 180% per year.

The gang used tricks to force borrowers to sign deposit contracts transferring real estate use rights and legalize interest with notarized loan contracts, illegally pocketing billions of VND.

HCMC police have detained suspected gang members Dang Ngoc Ngai (61, resident of Tan Phu district), Lam Vinh Nghi (41, resident of District 10), Vo Hoang Danh (48, resident of Thu Duc city), and Bui Thi Tam (32, resident of Thu Duc city).

Earlier, Trinh Tien Dung and 66 other individuals were prosecuted for fraudulently appropriating property; smuggling; illegally transporting goods and currencies across borders; using fake seals or documents of organizations; and violating regulations on state asset management, causing serious consequences that occurred at Thuduc House, the HCMC Tax Department and other institutions.

The court awarded 13 suspended jail terms, five financial penalties, and 49 jail terms. The heaviest punishments of 30 years imprisonment were awarded to Tran Nhat Thanh and Mac Van Nguyen, two of mastermind Dung's accomplices.

With Dung still on the run, investigators have said that his crimes will be handled in a separate case as soon as he is arrested. The investigating agency has also decided to suspend investigations in the case until the fugitive is apprehended.

Investigations have revealed that from 2016 to 2020, Dung directed many people to set up ghost companies in Vietnam and abroad to take advantage of the state's tax-free policy encouraging enterprises to export electronic components.

Investigators found that Dung had hooked up with many officers in District 1, 3, and 5 tax departments; and together with Luu Thi Ngat, director of Khanh Hung Company, used 16 "ghost" companies to issue false VAT invoices, legalizing inputs for Thuduc House, Southwest Saigon Company and Hoang Nam Anh Company to get VAT refunds.

Dung fleeing the country has caused many difficulties in investigating and settling the case, investigators said. The investigative agency of the Ministry of Public Security issued a wanted notice for him on February 8, 2021 and an Interpol notice was issued on February 24, 2021.