Ho Chi Minh City Court Hears Case of Over VND371 Billion Fraud in Fake Real Estate Projects

A trial has commenced at the Ho Chi Minh City People's Court against real estate company executives accused of defrauding hundreds of customers of over VND371 billion (approximately $14.6 million) by falsely advertising social housing and non-existent land projects. The defendants include Quách Mộc Tân, director of An Lạc Tân Company; Nguyễn Tấn Hòa, deputy director; Tăng Quang Sơn, director of Quang Sơn Company; and Nguyễn Lai, director of Thiên Lộc Land Company. Tân is also facing charges of money laundering. According to the indictment, since 2020, the defendants have been soliciting funds by providing false information about land development projects that do not exist and social housing units not yet eligible for transaction. They allegedly created a facade of legality for land parcels that had not completed transfer procedures, lacked project approval, or investment policy approval, and were not under their ownership. The "ghost" projects include An Lạc Riverside, Trần Đại Nghĩa, Tân Túc, Nơ Trang Long, and Blocks A2 and A3 of The Western Capital project in District 6. Through their companies, the defendants entered into capital contribution agreements, principal agreements, and deposit contracts with customers to collect money. Over VND371 billion has been defrauded, with over VND58 billion returned, leaving more than VND315 billion unremedied. Specifically, 265 victims were defrauded of over VND304 billion, with nearly VND260 billion still unreturned. An additional VND67 billion is believed to have been defrauded from customers who have not yet filed complaints. Quách Mộc Tân is also accused of defrauding 236 customers of VND133 billion by brokering the sale of social and commercial housing units in Blocks A2 and A3 of The Western Capital project, despite not being authorized by the owner, Hoàng Phúc Company. These units had not had their prices approved, and Block A3 had not received a construction permit. Tân allegedly assigned fake unit codes, areas, and prices to An Lạc Tân and Thiên Lộc Land companies for advertising and sales. Believing this information, many customers signed deposit contracts and transferred funds. Nguyễn Tấn Hòa, Tăng Quang Sơn, and Nguyễn Lai are accused of assisting Quách Mộc Tân in selling social housing and non-existent apartments, as well as "ghost" projects through their brokerage networks. Hòa is accused of helping to defraud over VND79 billion; Sơn over VND112.9 billion; and Lai over VND53.9 billion. In addition to these actions, Tân is also accused of using VND1 billion obtained from fraud to purchase land in his name, which he then contributed to a business to legitimize the funds. At the trial, the defendants admitted to their wrongdoing, with Quách Mộc Tân offering an apology to the victims, acknowledging that his actions caused difficulties in their lives. The victims are demanding full compensation for the defrauded amounts plus interest. Those who purchased social housing through An Lạc Tân also requested Hoàng Phúc Company to sign sales contracts or refund the money with interest. A representative from Hoàng Phúc Company stated that they could not yet sign contracts because many units had not had their prices approved by the Department of Construction, and the investor had not received funds from customers. Prosecutors are seeking life imprisonment for Tân, Sơn, and Hòa, and 20 years in prison for Lai for fraud. Tân faces an additional 11-12 years for money laundering. The court adjourned for further questioning on the following day. Source: VnExpress