Vietnam: 115 Billion VND Embezzlement Case, Assets Allegedly Hidden Under Relatives' Names

Nguyen Trung Kiên, former head of the business group at Thanh Phu Plastic Packaging Joint Stock Company, has been accused of embezzling nearly 115 billion VND (approximately 6.7 million USD) from the company. Kiên, along with sales staff Huynh Lan Nhi and Ho Le Kha, accountant Bui Thi To Oanh, and customer Tran Minh Thạnh, allegedly exploited the company's sales procedures to appropriate goods. Kiên and several relatives, including his parents, sister, uncle, and aunt, are also being prosecuted for money laundering. According to the indictment, from October 30, 2021, to before July 26, 2022, Kiên allegedly colluded with Thạnh to sell large quantities of packaging materials at low prices without issuing invoices. Kiên instructed Nhi and Kha to bypass standard procedures, using old customer codes to process orders and release goods from the warehouse to Thạnh. Simultaneously, he conspired with Oanh to avoid issuing sales invoices, thus preventing the company from recording the receivables and detecting the fraud. During this period, Kiên, Nhi, and Oanh created 1,396 production orders, leading to the unauthorized release of over 981,500 kg of plastic packaging, valued at more than 85 billion VND. Kha is accused of participating in 63 production orders, contributing to the appropriation of 74,170 kg of packaging worth nearly 6 billion VND. From July 26 to December 29, 2022, even after leaving the company, Kiên continued to collude with Nhi to sell packaging materials to Thạnh. Nhi allegedly adjusted selling prices without management approval, setting them significantly lower than market rates and even below cost. Kiên and Nhi sold over 489,600 kg of packaging to Thạnh for more than 22 billion VND, though the goods were valued at over 42 billion VND. Nhi only reported receivables of over 12.7 billion VND to Thanh Phu, with Kiên later providing funds to clear this debt. The remainder was allegedly pocketed by Kiên and Nhi. The total value of assets appropriated by Kiên, Nhi, and Thạnh across both phases is determined to be nearly 115 billion VND. Oanh is held responsible for assets worth over 85 billion VND, and Kha for nearly 6 billion VND. Following the embezzlement, Kiên allegedly used the illicit funds to purchase properties, a Mercedes-Benz GLC 300, and gold. By early December 2022, upon learning that Thanh Phu had discovered the scheme, Kiên allegedly had his parents, sister, uncle, and aunt register these assets under their names to conceal their origin. The total value of assets linked to the money laundering charges is over 25 billion VND, including real estate in Ho Chi Minh City, Da Lat, and Tien Giang, 55 gold bars, and the Mercedes-Benz. Kiên's father is accused of helping conceal over 10 billion VND used for house construction and hiding 55 gold bars with his wife. Other assets were registered under the names of Kiên's uncle and aunt, and his sister. Prosecutors assert that these relatives were aware of the illicit origins of the assets but assisted in concealment and transfer, hindering recovery efforts. The trial is scheduled to take place at the Ho Chi Minh City People's Court.