Tan Hiep Phat chairman accused of appropriating $42.5M

The police on Saturday recommended Thanh, 71, and his daughters Tran Ngoc Bich, 40, and Tran Uyen Phuong, 43, to be charged with abusing trust to appropriate property. Uyen was the vice director of Tan Hiep Phat and Bich a former director.

Authorities said Thanh and his daughters have exploited regulations, allowing loans at an interest of 3% a month, below the level that constitutes usury. When loaning money, Thanh forced businesses and individuals to make contracts to hand over projects and stakes. The value of the real estate projects as stated in the contracts were much lower than their actual value.

When borrowers expressed their worries about such contract terms, Thanh gave out information to foster their trust on his credibility and financial capabilities.

After procedures to hand over the properties were completed, Thanh allegedly instructed his daughters to put the properties under their names to gain control over them. Once the borrowers paid back both the loan and the interests as promised, Thanh used tricks and excuses to not give their properties back.

Thanh and Phuong were arrested in April last year for property appropriation.

Compared to the result of the investigation in October 2023, the value of the appropriated property committed by them has increased from VND787 billion to VND1.048 trillion.

Following the scandal, Pham Thi Nu, Thanh's wife, took over as CEO. Tan Hiep Phat, founded in 1994 and the largest beverage producer in Vietnam, is famous for its herbal tea and energy drinks.