Five suspects arrested for financial fraud

General Director of DFDI company Nguyễn Quang Hoàng (centre) is arrested by the investigation police unit of Đà Nẵng City’s public security department for investigation of a financial fraud case in the city. — Photo courtesy of Đà Nẵng City's Public Security Department

ĐÀ NẴNG — Five suspects have been detained and will be prosecuted for alleged fraud following an investigation into funds raised by GFDI, an investment consultancy company, in the central city of Đà Nẵng.

The investigating unit of the city’s public security department said it had arrested Nguyễn Quang Hoàng, 36, general director of the company, and four others: Nguyễn Đỗ Đạt, finance director; Trần Thị Mỹ Hạnh, budget and cashier manager; Tô Hồng Trà and Trần Thị Kiều Trang, the manager and deputy manager of the company's financial transaction section.

An initial report from the investigation unit revealed that GFDI, which was established as a finance consultancy service company with a legal capital of VNĐ80 billion (US$3.2 million) in 2018, had signed lending contracts worth a total of VNĐ3.7 trillion ($148 million) with 7,541 customers in 11 provinces and cites including Hà Nội, HCM City, Đà Nẵng, Bà Rịa-Vũng Tàu, Cần Thơ, Khánh Hòa, Huế, Quảng Trị, Quảng Bình, Nghệ An and Đắk Lắk.

The company's general director allegedly intentionally instructed staff to distribute marketing materials and advertisements based on false information on the business’ investment activities.

According to investigators, the firm allegedly told lenders that it had been raising funds for investment in prospective high-profit hospitality industries, including the food and beverage sector, consumer goods production with best-selling brands like Seneco, Enzy food, and K-products, and film and studio production.

GFDI had allegedly promised that it would offer high interest rates for lending money, from 1.5 per cent to 2 per cent per month for a short one-month package, 2.5 per cent per month for a three-month package, 3 per cent for a six-month package and 3.5 per cent for a nine-month lending contract, the unit reported.

However, the company then allegedly failed to invest in the promised sectors. It eventually could not cover its monthly interest payments and the initial investment funds for lenders, according to the investigation unit.

The investigation agency said it has identified 24 assets and funds related to the alleged financial swindle.

The case remains under investigation. — VNS