HCMC – Do Anh Dung, chairman and general director of Tan Hoang Minh Group, and his son, Do Hoang Viet, will begin standing trial on March 19 for their alleged involvement in a massive financial fraud scheme totaling over VND8.6 trillion.
The trial is expected to last 20 days at the Hanoi City People’s Court, with Judge Nguyen Xuan Van presiding.
Do Anh Dung, his son Do Hoang Viet, and 13 other defendants are facing alleged charges of misappropriation of assets under Article 174, Clause 4 of the Penal Code.
The court plans to summon numerous investors who purchased the bonds involved in the case to testify as witnesses.
According to the indictment, Tan Hoang Minh Group was saddled with a total debt of nearly VND20 trillion, excluding additional liabilities from eight bond issues in 2021. To address these financial challenges, Dung allegedly instructed his son and subordinates to issue corporate bonds through private placement to raise capital.
They opted to have Tan Hoang Minh’s subsidiary companies individually issue bonds. Their purpose was to mobilize and misappropriate money from secondary investors, mainly non-professional investors.
This ploy enabled them to bypass the regulations on the issuance of corporate bonds through private placement, which are exclusively allowed for sale to professional investors.
Through its three subsidiary companies—Viet Star Real Estate Investment Company Limited, Soleil Investment and Hotel Services Joint Stock Company, and Winter Palace JSC—individually, Tan Hoang Minh Group ultimately raised about VND14 trillion.
At the time the case was initiated in April 2022, Tan Hoang Minh had utilized more than VND5,000 billion from bond buyers to repay those whose bonds had fallen due earlier. The remaining sum, exceeding VND8,600 billion, from 6,630 investors, was allegedly misappropriated.
