Multi-level marketing firm accused of cheating hundreds of people

07-Sep-2019 Intellasia | DtiNews | 6:02 AM Print This Post

A multi-level marketing company headquartered in the Central Highlands province of Dak Lak has been accused of swindling hundreds of people across Vietnam.

The police have received petitions from 319 people from 24 cities and provinces nationwide, denouncing Hoang Gia Company for defrauding them for a total of around VND30 billion (USD1.3 million).

The case was started early this year when a man whose name was kept in secret laid a charge against Do Thanh Tam, Hoang Gia Company for playing a trick on him.

According to the man, in February, he was invited to contribute capital into the company’s Hoang Gia project.

The company was depicted as being large in scale, and operating in different areas with many branches across the country. So an investment would guarantee huge profits within a short time.

He then decided to pour VND144 million (USD6,262) into the project. However, after that, he did not receive the profit as pledged.

Dozens of other people, including those who even pumped into nearly VND1 billion into the project, were also in the same situation with him.

Another person in Buon Ma Thuot City, Dak Lak, invested up to VND864 billion (USD37,565) into the project since March last year.

Under the contract signed with the company, he would receive VND1.7 billion, consisting of both profit and the initial investment, after that, but until now he had been paid just VND500 million.

The company had delayed the repayment for dozens of the people on numerous times, reasoning their financial difficulties.

Colonel Nguyen Thi Xuan, deputy director of Dak Lak Department of Police said that the company’s website domain was registered in Vietnam, but has different IP addresses in the US. The department has asked the Vietnamese People’s Supreme Procuracy to cooperate with the US in the investigation.

Meanwhile, according to the company’s website, it was voted among top 100 Asia-Pacific outstanding brands in 2017.


Category: Business, Vietnam

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