SJC network implicated in smuggling of 3,400 diamonds: Police launch probe

Economic police in the central province of Thanh Hoa on Wednesday launched a probe into four individuals suspected of involvement in a scheme to smuggle over 3,400 diamonds into the network of SJC, a major jewelry firm. The investigation highlights a sophisticated operation to illicitly bring high-value diamonds from Hong Kong into Vietnam and legitimize them. According to investigators, Le Thuy Hang, former general director of SJC, allegedly instructed Pham Thi Hong Duyen, head of the company's business department, to purchase diamonds from Hong Kong, arrange their illegal transport into Vietnam, and add them to the company's inventory. Duyen purportedly attempted to legalize these diamonds by making it appear that SJC had bought them back from its retail buyers. Within the alleged ring, Duyen placed orders and received the smuggled diamonds in Vietnam. Tran Cong was responsible for selling the illicit stones to SJC, while Tran Huu Thanh Quan and Hoang Trung Bac handled the deliveries. The diamonds were then sent for inspection to SJC Golden Dragon Company before being offered for sale, with investigators noting the group split the stones into small batches to allay suspicion. Based on suspects' statements and unearthed documents, investigators have determined that between 2022 and 2024, more than 3,400 smuggled diamonds worth VND500 billion (approximately $2.6 million) entered SJC's retail system. Since expanding the investigation, authorities have seized an additional 354 stones valued at VND68.8 billion ($2.6 million), bringing the total number of seized stones to 1,239. Hang is already serving a 22-year prison sentence for embezzlement and abuse of position and power in a separate case. The diamond smuggling case, under investigation since early July, has revealed a transnational gold and diamond smuggling network operating through a closed process with sophisticated methods to bring goods into Vietnam and legitimize them. Suspects communicated with operators in Hong Kong via encrypted messaging applications to order diamonds, using private groups for price discussions and delivery coordination. The diamonds were transported by air through airports in Ho Chi Minh City, Hanoi, Da Nang, and Phu Quoc, concealed in luggage, clothing, and shoes to evade customs. Upon arrival in Vietnam, deliveries were organized in multiple layers, with each participant knowing only their specific task. Couriers and recipients reportedly used serial numbers on U.S. dollar bills as authentication codes and enabled automatic message deletion to erase traces of communication. Lieutenant Colonel Tong Dinh Xuan, head of the Thanh Hoa economic police division, described the investigation as "particularly difficult" due to the suspects' cross-border operations, encrypted transactions, and the nature of diamonds, which are small, easy to conceal, and require highly specialized appraisal knowledge. Authorities estimate the ring traded over 30,000 diamonds for around VND1.5 trillion, profiting more than VND300 billion. The Thanh Hoa police are investigating 31 suspects for "smuggling" and have seized 1,239 diamonds along with large quantities of gold, jewelry, and assets whose legal origin has not been established. Those charged include Dang Ngoc Thao, director of PNJ-LAB Appraisal Company, a subsidiary of Vietnam's largest listed jeweler, Phu Nhuan Jewelry Joint Stock Company (PNJ), and owners of several gold and gemstone businesses in Ho Chi Minh City. Authorities are working to identify the roles of all organizations and individuals involved in the smuggling network. The Vietnamese government continues its efforts to combat corruption and illicit trade as it pursues economic growth. Information source: VnExpress International