However, after many years the project was not implemented, the company closed down and ceased operations, leaving investors in a bind.
Investors in dire straits
In recent days, at the headquarters of Eternal Properties Thao Dien Company Limited (14 Nguyen Co Thach, An Loi Dong Ward, Thu Duc City, Ho Chi Minh City), there has been an incident where many people have hung banners demanding their rights. Accordingly, Mr. Do Quoc Huy (Director of Eternal Properties Thao Dien Company Limited) called for investment capital in an office building project and financial business but did not implement it. Notably, after many years of not implementing the project, this company suddenly closed down and is no longer operating, which has left many people feeling like they are sitting on hot coals.
Many investors hung banners demanding their rights.
Talking to reporters, Ms. Ho Thi Ngoc Tr. (58 years old, residing on Le Duc Tho Street, Ward 14, Go Vap District, Ho Chi Minh City), the victim of the above incident, shared that Ms. Tr. herself is a retired teacher. She saw that Mr. Huy was a good businessman and was also a close friend of her son, so she believed in the investment invitation that brought high profits. She hoped that the 2 billion VND she had saved from working for many years, if invested, would generate profits for her retirement.
“Now that I am retired, I have to take care of my sick child. I myself have a herniated disc and degenerative spine. The doctor has asked for surgery, but up to now, I do not have the money to treat the disease. Now the family is completely stuck, in dire straits, at risk of losing all their assets because they cannot contact Mr. Huy,” Ms. Tr. sadly said.
Like Ms. Tr., many other people who were also victims in the above incident fell into extremely difficult circumstances because they believed in Mr. Do Quoc Huy's invitation to invest with high profits.
According to people who have invested in Mr. Huy's company, in addition to raising capital by contributing capital to build an office building, Mr. Huy also raised capital by borrowing money from investors with agreed interest rates. The contracts have a specified contract term, and the right to pay off before the term is due is granted by giving 45 days' notice. In case of contracts that have expired and want to be renewed, a new contract will be signed, the principal will not be withdrawn but will be paid off directly by the new contract.
After borrowing money, Mr. Huy maintained regular interest payments until May 2023. From May 2023, citing poor health and operational difficulties, Mr. Huy reported that he was unable to repay the debt.
Prosecuted many company directors calling for capital contributions
Subjects with signs of fraud using this method often hide under the guise of wealthy businessmen, driving luxury and expensive cars, having relationships to appropriate investment capital for projects and businesses that do not exist. Therefore, many investors are easily deceived by these subjects, resulting in investors being at risk of losing billions of dong, falling into the situation of "losing money and suffering", hanging banners demanding benefits, and prolonged lawsuits. The case of Mr. Do Quoc Huy (Director of Eternal Properties Thao Dien Co., Ltd., located in Thao Dien ward) calling for investment capital with a commitment of high profits but not implementing, is also one of the above forms.
The company headquarters has long since closed.
This form of fraud has also been repeatedly warned by the Ho Chi Minh City Police Department to raise people's vigilance. Specifically, the Ho Chi Minh City Police Department has informed about a case with signs of fraud to appropriate assets by calling for capital contributions at One World Healthy Company Limited (abbreviated as OHW Company) and 3 Key Ideal Thuan Loi Company Limited.
In a similar case, the Ho Chi Minh City Police Department has recently completed the investigation conclusion and requested the Ho Chi Minh City People's Procuracy to prosecute Ms. Pham Thi Tuyet Nhung (Director of Angel Lina Company, Dat Vang Hoang Gia) and 7 accomplices for fraud and appropriation of property in calling for investment and selling fake real estate to more than 500 people, appropriating up to 815 billion VND.
To get objective and multi-dimensional information, Nguoi Dua Tin reporters went to the headquarters of Eternal Properties Thao Dien Company Limited (14 Nguyen Co Thach, An Loi Dong Ward, Thu Duc City, Ho Chi Minh City) to contact and work. However, at this address, the house was closed with no activities or people coming in or out. Talking to reporters, some people living around the house said that there used to be a company in this house with Mr. Huy as director, but this company has long since stopped operating here.
The reporter also contacted all the phone numbers provided by the people as well as the phone numbers collected by the reporter, which were said to belong to Mr. Huy. However, these phone numbers could not be contacted.
Regarding this issue, Lawyer Nguyen Van Tin (Ho Chi Minh City Bar Association) said that the subjects opened joint stock companies with the trick of selling shares, however, when people buy these shares, they do not have the status of shareholders, but only receive "certificates of capital contribution". The transfer of shares is also illegal, because these are not dividend-preferred shares, nor are they redeemable preference shares, but they commit to paying both principal and interest when due.
The trick of these subjects is just to take money from later people to pay earlier people. These enterprises have the common characteristic of not issuing bonds because they do not meet the conditions prescribed by the Securities Law, Decree 183/2018/ND-CP, Decree 153/2020/ND-CP, Decree 65/2022/ND-CP, Decree 08/2023/ND-CP, but instead use the trick of transferring shares to legalize the receipt of capital contributions and investment capital, easily deceiving those who lack legal knowledge.
“The common point of the victims who fall into this form of fraud is a lack of legal knowledge in the field of capital contribution and investment. In addition, the subjects take advantage of the gullibility and trust, preying on the greed of many victims who want to do nothing but receive high investment interest rates. The subjects have the victims sign fake contracts to contribute capital to do business and invest, but in fact there are no investment and business activities...
After signing the capital contribution contract, the investment contract, the subjects then take the money from the latter to pay the former in the beginning, but after a while, they will appropriate it and not pay it back, citing various excuses. Some victims are taken by the subjects to see the business establishments and investment projects. However, due to lack of knowledge, many people do not recognize the legality of these business establishments and projects. In fact, these are just business establishments owned by others that the subjects "temporarily rent", then say that these are establishments owned by themselves to create trust for the victims, the projects are only on fake documents, fake documents... The above series of actions are aimed at creating a cover and creating trust from the victims so that the victims "put down money" to invest", said lawyer Tin.
Q. Lam
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