Business
Multi-level company prosecuted for fraud
  • By Tuan Hop | dtinews.vn | February 22, 2016 05:07 PM

Lien Ket Viet Company allegedly swindled nearly 95.2 million dollars from 60,000 people by faking a prime ministerial certificate of merit and fraudulently claiming to be company of the Ministry of Defence.

 

The apparently fake awards ceremony held by the Lien Ket Viet Company

Lien Ket Viet was established in 2010 by Le Xuan Giang and was given licence to operate a multi-level marketing business in 2014. According to the company, their products are mostly supplements and health care equipment for old people bought from the Biovaccine Corporation and BQP Medical Supply Company. In reality, the BQP Medical Supply Company was also established by Le Xuan Giang.

Most of the customers looked at the abbreviated name and mistook BQP Medical Supply Company for the Ministry of Defence Medical Supply Company. In order to make their products more legitimate, they allegedly used stamps and logos of Military Hospital 108 and the Ministry of Defence's Thanh Ha Company on their products.

Giang then used images of former officers and leaders at the Ministry of Defence to promote the company and claimed that these people were on the company's board. It is said that there was even a fake awards ceremony held to receive the certificate of merit from the prime minister.

Believing that Lien Ket Viet was operating under the Ministry of Defence, many people were willing to invest VND8.6m to join the company, hoping to reap VND449m in returns after five years.

People were encouraged to buy products from the company and resell it to other people or recruit their acquaintances to the company to earn commission fees. The pricier the products they bought, the higher commission fees they were promised. The company also promised cars, houses and other bonuses to investors.

According to the authorities, Lien Ket Viet successfully recruited over 60,000 people from 27 cities and provinces, raking in near to 100 million US dollars. The case was discovered after people gathered at Lien Ket Viet's headquarters in Hai Phong and Hanoi because the company failed to pay them as promised, however, the company had already already shut down.

Lien Ket Viet's Chairman Le Xuan Giang, deputy directors Nguyen Thi Thuy, Le Van Tu and four other leaders face criminal charges for fraud.

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