Nearly $115 Billion Illegally Acquired; Assets Including Land, Luxury Cars, Gold Allegedly Registered Under Relatives' Names

In Ho Chi Minh City, Nguyen Trung Kiên, a former sales manager at Thanh Phu Plastic Packaging Joint Stock Company, along with several accomplices, is accused of defrauding nearly 115 billion VND (approximately $4.8 million USD). VnExpress reported that Kiên and his associates allegedly exploited the company's sales process to illicitly obtain funds. These funds were then reportedly used to purchase land, luxury vehicles including a Mercedes-Benz GLC 300, and gold bars. To conceal these assets, Kiên allegedly registered them under the names of his parents, elder sister, uncle, and aunt. The court is set to try Kiên and his co-defendants for "Fraudulent Appropriation of Property." Relatives suspected of assisting in asset concealment face charges of "Money Laundering." According to the indictment, from October 2021 to December 2022, Kiên allegedly agreed to sell large quantities of packaging materials and vacuum bags to a long-term customer, Tran Minh Thạnh, at a reduced price without issuing invoices. Kiên is accused of instructing his subordinates to bypass standard procedures, use old customer codes for production orders, and release goods from the warehouse. Furthermore, he allegedly colluded with the accounting department to avoid recording accounts receivable, thereby preventing the company from detecting the fraud. During this period, Kiên and his accomplices allegedly created 1,396 production orders, illicitly taking over 981,500 kg of plastic packaging materials valued at over 85 billion VND (approximately $3.6 million USD). Huỳnh Lan Nhi, a sales employee, also participated in creating 63 production orders, assisting in the appropriation of 74,170 kg of packaging materials worth nearly 6 billion VND. From July 26 to December 29, 2022, even after leaving the company, Kiên reportedly continued to collude with Nhi to sell packaging materials to Thạnh. During this time, Nhi unilaterally adjusted sales prices without company board approval. The prices recorded by the company in its accounts receivable were significantly lower than the actual selling prices, and even below production costs. Kiên and Nhi sold over 489,600 kg of packaging materials to Thạnh for more than 22 billion VND, though the goods were valued at over 42 billion VND according to appraisals. Nhi only informed Thanh Phu Plastic Packaging of an account receivable of over 12.7 billion VND. Kiên subsequently provided funds to Nhi to settle this amount with the company, while the remaining proceeds were illegally appropriated and used for personal gain. The total value of assets allegedly appropriated by Kiên, Nhi, and Thạnh across both periods is determined to be nearly 115 billion VND. Oanh is held responsible for assets valued at over 85 billion VND, and Kha for assets worth nearly 6 billion VND. After the appropriation, Kiên used the illicit funds to purchase numerous assets, including real estate, vehicles, and gold. By early December 2022, upon learning that the company had discovered the irregularities, Kiên allegedly requested his parents, elder sister, uncle, and aunt to register the assets to conceal them. According to the case file, the total value of assets related to the money laundering charges is over 25 billion VND, encompassing various properties in Ho Chi Minh City, Da Lat, and Tiền Giang; 55 gold bars; and a Mercedes-Benz GLC 300. Specifically, Kiên's father is accused of helping his son conceal over 10 billion VND used for house construction and hiding 55 gold bars with his wife. Other assets were allegedly registered under the names of Kiên's uncle and aunt, and his elder sister. The prosecution asserts that these individuals were fully aware that the assets originated from Kiên's criminal activities but still assisted in their concealment and transfer, thereby impeding asset verification and recovery efforts. This case highlights sophisticated corporate fraud and subsequent asset concealment tactics prevalent in Vietnam. As the country continues its economic growth under a one-party system, the enforcement of laws and anti-corruption measures remain critical challenges.