Provincial court begins proceedings against 111 defendants for extortion

Defendants, including a law firm’s deputy director, appear in Tiền Giang Province People’s Court on Tuesday to face extortion charges. — VNA/VNS Photo

TIỀN GIANG — Tiền Giang Province People’s Court on Tuesday began proceedings against 111 defendants, including a deputy director of a law firm, charged with extortion.

The trial, held in Mỹ Tho City, involves Trần Văn Châu, deputy director of Pháp Việt Company, identified as the mastermind behind an organised crime group engaged in "unauthorised debt collection activities."

The group was identified as an organised crime syndicate, with Châu and Hồ Quốc Hưng playing leading roles.

According to investigators, from January 2021 to February 2023, the two men exploited the name of Pháp Việt Company to sign legal consulting contracts with multiple commercial banks and lending firms, while actually conducting "illegal debt collection".

The group was to receive between 18 per cent to 50 per cent of the total amount collected, depending on the duration of the overdue debt.

The police found that Châu and Hưng directed a workforce of 579 employees to intimidate nearly 173,000 borrowers in order to extort up to VNĐ456 billion.

They were able to earn over VNĐ168 billion of the extorted amount in exchange for their service, of which Châu received VNĐ15 billion and Hưng VNĐ12 billion, according to police.

A particularly alarming incident involved threats directed at an elementary school in Cai Lậy Town, resulting in an eight-year-old girl discontinuing her attendance due to fear.

The situation arose from a debt of VNĐ50 million ($2,000) owed by the girl’s uncle, who had absconded after failing to repay the debt.

Authorities have also seized multiple properties and vehicles linked to the two men. Nearly 100 defendants voluntarily returned portions of their illicit gains.

During the investigation, victims did not seek compensation.

The trial, which has attracted public attention due to its violent nature, will last until the end of the month.

Last month, the HCM City People’s Court sentenced seven former employees of a lending company to as much as nearly five years in prison for the same charge.

They were found to have conducted various unauthorised debt collection activities, including sending threatening messages to hundreds of thousands of customers to coerce debt repayments. — VNS