Over 1,400 defrauded investors seek leniency for Tan Hoang Minh chairman and his son

This group accounts for one-fifth of the total 6,630 investors who bought Tan Hoang Minh bonds in 2021 and 2022, only to later discover they had been defrauded.

They have submitted a joint letter to the People's Court of Hanoi, requesting leniency for Tan Hoang Minh chairman and CEO Do Anh Dung, and his son and deputy CEO Do Hoang Viet. The duo, along with 13 accomplices, are set to stand trial on Tuesday for charges related to fraudulently appropriating assets.

To accommodate the large number of affected individuals, a mega tent has been erected at the People's Court of Hanoi to broadcast the trial live. It's anticipated that hundreds of people are expected to attend.

Falsifying reports

By June 2021, Tan Hoang Minh had accumulated VND18.5 trillion ($748.23 million) in debt, prompting Chairman Do Anh Dung to direct his son to devise methods for fundraising, as outlined by the prosecution.

Their strategy involved utilizing three subsidiaries—Ngoi Sao Viet, Soleil, and Cung Dien Mua Dong—to issue bonds in a three-step process that included the issuance of bonds, their repurchase by Tan Hoang Minh, and their final sale to retail investors.

Due to its substantial debts, Tan Hoang Minh was ineligible for bond issuance, necessitating the use of these subsidiaries.

However, these subsidiaries also lacked the qualifications to issue bonds, leading Do Hoang Viet to instruct the head accountant, Phung The Tinh, to fabricate their financial statements to meet the criteria for bond issuance.

This manipulation was supported by two auditing firms, CPA Hanoi and Nam Viet, who validated the doctored reports, marking a breach of Vietnam's accounting standards, according to the prosecution.

From July 2021 to March 2022, the subsidiaries issued 90 million bonds valued at VND10 trillion, purportedly to fund a project on Phu Quoc Island, a renowned tourist destination in southern Vietnam. But investigators found that the project never existed.

This intricate scheme enabled Tan Hoang Minh to amass VND14 trillion from novice investors by recycling funds: using the capital from new investors to settle obligations with earlier ones.

They allegedly stole VND8.643 trillion from investors by the time of the investigation.

During the investigation, Tan Hoang Minh and other implicated parties handed over the full amount of VND8.6 trillion to the Ministry of Public Security, aiming to address the repercussions of the case and provide compensation to the defrauded investors, according to the prosecution.