Dismantling a fake milk powder production line with nearly 600 types

Close-up of workers canning finished products at the production facility, preparing to launch them to the consumer market

The Ministry of Public Security's Investigation Police Agency said it had dismantled a ring producing, trading, and consuming fake milk powder in extremely large quantities in Hanoi and neighboring provinces; prosecuted and temporarily detained two masterminds of the ring and six other defendants for the crimes of "Producing and trading in fake food products" and "Violating accounting regulations causing serious consequences".

According to the initial investigation results, the police agency determined: Since August 2021, grasping the increasing demand for nutritional products, food supplements, and powdered nutritional products (collectively referred to as powdered milk) in the domestic market, the group of subjects led by Vu Manh Cuong and Hoang Manh Ha established the enterprise Rance Pharma Company located at Him Lam residential area, Van Phuc, Ha Dong, Hanoi and Hacofood Group Company, located at LK52-10, Phu Luong New Urban Area, Phu Luong Ward, Ha Dong District, Hanoi to directly organize the production, trading, and consumption of fake powdered milk products.

To date, this line has produced 573 brands of powdered milk of all kinds. The milk is for people with diabetes, kidney failure, premature babies, and pregnant women with ingredients declared on the product such as: Bird's nest extract, cordyceps, macadamia powder, walnut powder... but in reality, these substances are completely absent. The subjects have removed some input materials and replaced and added some additives. The police agency determined that the quality indicators of some substances in the powdered milk were below 70% of the declared level, which is enough to be identified as counterfeit goods.

In addition to the two companies mentioned above, which were established to organize the production of fake milk powder products, the subjects also entered into joint ventures and partnerships in the form of contributing shares with many other subjects to establish 9 companies with the purpose of registering the product lines (product brand labels) and directly trading, distributing and consuming products manufactured at the factories of Hacofood Company and Rance Pharma Company. In about 4 years, the subjects consumed all kinds of milk on the market, bringing in revenue of nearly 500 billion VND.

The investigation also showed that all financial and accounting activities of Rance Pharma Company and Hacofood Company were managed by Cuong and Ha, including many signs of violating accounting regulations causing serious consequences.

The case is being investigated and clarified by the Ministry of Public Security's Investigation Police Agency to be strictly handled before the law.

Vu Phong

Source: https://baochinhphu.vn/triet-pha-duong-day-san-xuat-sua-bot-gia-voi-gan-600-chung-loai-102250412195341384.htm