As reported by VietNamNet, the Security Investigation Agency (Ministry of Public Security) has completed the Supplementary Investigation Conclusion of the case of Violating regulations on banking activities and other activities related to banking activities; Giving bribes; Receiving bribes and Lending at high interest rates in civil transactions.

The Investigation Police Agency proposed to prosecute Mr. La Quang Binh (Chairman of the Board of Directors of ECPAY Company) for the crime of Violating regulations on banking activities, other activities related to banking activities and Bribery.

According to the investigation conclusion, since 2016, due to having a credit relationship at a bank, Mr. La Quang Binh, his sister La Thi Phuong Lien and their subordinates clearly knew the legal regulations on granting credit limits and disbursing loans to corporate customers.

Mr. Binh himself understands that his companies do not have financial capacity, do not conduct production and business activities, and do not meet the conditions to be granted a credit limit for disbursement at the bank.

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But in order to have money to pay off loans from credit institutions, pay off high-interest loans from many individuals, pay for the operating costs of companies, etc., Mr. Binh colluded with a number of bank officials, and assigned his sister Lien and employees to find and buy hundreds of companies, change business registrations, find legal representatives, create fake documents to obtain credit limits, and disburse thousands of billions of VND at a bank.

Tycoon La Quang Binh used the money for many different purposes and lost his ability to pay, causing especially serious damage to the bank's assets.

According to the Investigation Police, Mr. Binh also discussed, agreed, and together with others, bribed 200,000 EIN shares (equivalent to 2 billion VND) to Mr. Dao Hoang Thang (bank director) to resolve the problem so that Thinh Phat Company would not be transferred to bad debt and continue to receive capital disbursement against regulations.

The investigation concluded that, when his business was in trouble and he needed a lot of money to make up for it, Mr. Binh borrowed money at high interest rates everywhere. One of the people who lent money to Mr. Binh was Mr. Pham Quang Tao.

From March 2021 to April 2022, Mr. Tao lent Mr. Binh a total amount of VND 215 billion with an interest rate of 0.3% - 0.45%/day (from VND 3,000 - 4,500/1 million VND/day, equivalent to 109.5% - 164.25%/year, from 5.475 times to more than 8.2 times the highest interest rate in civil transactions prescribed in Article 468 of the Civil Code). The total interest is more than VND 41.7 billion.

Mr. La Quang Binh paid Mr. Tao the total principal debt of 188 billion VND, still owing 27 billion VND. Having failed to pay interest on time many times, Mr. Binh had to pay interest exceeding the prescribed level.

Another creditor of Mr. Binh is defendant Nguyen Hoai Anh (former General Director of Tin Viet Investment and Business Joint Stock Company). Around June 2021, when he learned that Mr. Binh needed money to pay off the loan at the bank and withdraw the mortgaged assets, Pham Nhu Ha (former Deputy Director of the bank) and Nguyen Hoai Anh discussed and agreed that Ha would not disburse the loan to Mr. Binh's company, forcing this tycoon to borrow money from Hoai Anh at high interest rates.

According to the Investigation Police, Mr. Binh borrowed 120 billion VND from Mr. Hoai Anh with an interest rate agreement of 0.4%/day (4,000 VND/1 million/day, equivalent to an interest rate of 146%/year, 7.3 times higher than the highest interest rate in civil transactions).

Of the 120 billion VND loan mentioned above, Pham Nhu Ha contributed 2 billion VND; the remaining 118 billion VND was contributed by Hoai Anh, but only 1.1 billion VND was from Mr. Hoai Anh's own pocket. The remaining 116.9 billion VND was money the defendant took from the amount that the bank disbursed to Phuong Dung and Dai Nam Companies.

By July 14, 2021, Mr. Binh had transferred 9.6 billion VND in interest to Hoai Anh.

2 former bank leaders lend money at high interest rates, profiting tens of billions of dong

2 former bank leaders lend money at high interest rates, profiting tens of billions of dong

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