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Tan Hoang Minh Group chairman brought to court over bond fraud

The Saigon Times

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HCMC – Do Anh Dung, chairman of Tan Hoang Minh Group, his son and 14 others involved in a case of misappropriating over VND8.6 trillion from investors, began standing trial today.

The Hanoi City People’s Court began the first-instance trial of the fraudulent misappropriation case at Tan Hoang Minh Group. Among the defendants are Do Anh Dung, chairman and general director of the group, and his son Do Hoang Viet, deputy general director of the group.

The defendants face charges of fraud and misappropriation of assets. According to the investigation documents, the Covid-19 pandemic in 2021 plunged Tan Hoang Minh Group into huge debt.

By January 2022, its total debt had surged to nearly VND20 trillion, excluding the liabilities stemming from eight bond issues in 2021. To address pressing financial obligations, Dung instructed his son and other subordinates to launch corporate bond issues to raise capital.

In the course of implementing this plan, Dung and his associates opted to have Tan Hoang Minh’s subsidiary companies—Viet Star Real Estate Investment Company Limited, Soleil Investment and Hotel Services Joint Stock Company, and Winter Palace JSC—individually issue bonds.

Subsequently, Dung authorized the signing of fake contracts to repurchase these bonds issued by these affiliates. Owing to the brand trust, thousands of investors, mostly non-professionals, were lured into buying such debt instruments.

After Tan Hoang Minh had received nearly VND14,000 billion, Do Anh Dung, the then deputy general director of the group, instructed staff to use this money for debt repayment, share purchase, and personal spending, instead of their intended purpose.

As a result, the group fraudulently misappropriated over VND8.6 trillion from 6,630 investors. To remedy the consequences, the defendants along with their families and related entities have deposited over VND8,600 billion into the escrow account of the investigating agency.

Numerous investors who purchased corporate bonds under the Tan Hoang Minh Group’s name are attending the trial. The trial is expected to last 20 days.

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