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Do Anh Dung, Chairman of Tan Hoang Minh Group |
On November 22, the Supreme People's Procuracy reported that the indictment of the individuals involved in the case at Tan Hoang Minh Hotel & Service Trading Company Limited (Tan Hoang Minh), including Do Anh Dung, Chairman of the Board of Directors of Tan Hoang Minh, and 14 other defendants, has been finalized.
According to the indictment, due to financial challenges in sustaining operations, business activities, investments, and settling debts of Tan Hoang Minh Group, Do Anh Dung endorsed and, through his son Do Hoang Viet, guided and authorized his accomplices to utilize the legal entities of three companies (Viet Star, Soleil, Winter Palace) to issue nine private placement corporate bond packages, totaling VND10.03 trillion, to raise funds for Tan Hoang Minh from June 2021 to March 2022.
To facilitate bond issuance, the accused parties collaborated in executing numerous deceptive acts and schemes, legitimizing conditions for bond issuance, bond issuance documents, bond offering procedures, and bond transactions. They concocted false business activities by signing fictitious investment cooperation, deposit, and share purchase and sale contracts among companies within the Tan Hoang Minh group. Colluding with the implicated parties from auditing units, they legitimized the financial report data of the three issuing companies, providing comprehensive approval opinions to affirm these companies' eligibility to issue bonds. Moreover, they signed "bogus" bond transfer contracts depicting Tan Hoang Minh's payment for bond acquisitions and cash flow from the three issuing companies in accordance with investment cooperation agreements to create virtual value for bond packages and validate bondholders for the Tan Hoang Minh Group.
Moreover, the accused utilized assets from fictitious investment cooperation contracts as collateral for the bonds. Thereby, they fostered trust while leveraging the legal entity and the Tan Hoang Minh brand to attract and misappropriate funds from 6,630 investors, amounting to a total of VND8.6 trillion. These funds were employed for various purposes, deviating from the intended purpose of the bond issuance.
In this process, Do Anh Dung, legal representative of Tan Hoang Minh, as the overseer, director, and ultimate decision-maker in the economic activities of Tan Hoang Minh and its affiliated companies, directed Do Hoang Viet, Deputy CFO, to seek funding to sustain the conglomerate's business operations and investments by issuing bonds through private placement for capital mobilization. Do Anh Dung also gave his consent and approval for the execution of various elements, including the selection of Tan Hoang Minh-affiliated companies for bond issuance, determination of the anticipated issuance value, collateral assets, and interest rates. He established the Bond Business Center under Tan Hoang Minh and entrusted his son with directing and managing the bond sales.
Do Anh Dung also authorized Le Van Thinh (Deputy CEO) and 21 individuals within Tan Hoang Minh to sign contracts and the bond selling procedures and gather funds from bond buyers. Daily financial reports detailing the income and expenses from bond issuance were regularly submitted to Do Anh Dung through the financial accounting center and the offices of the chairman and general director for review and strategic guidance. He directed the defendants and related individuals at Tan Hoang Minh to allocate the funds obtained from bond sales for various purposes, deviating from the initially planned bond issuance purposes. This resulted in the misappropriation of VND8.6 trillion from 6,630 victims through the issuance of nine bond packages.
