On 23/9, Duc and 18 accomplices, aged 24-33, were sentenced by the Hanoi People's Court after a 3-day trial.

Bui Trung Duc, 33, from Ho Chi Minh City, received the highest sentence of 18 years. He played a key role, directly managing the operation and profiting 1.35 billion VND (700 million VND in salary over 10 months and 650 million VND in commissions) from the defrauded amount of 12 victims.

His accomplices received sentences ranging from 10 to 16 years for the same charge of fraud and property appropriation. Thai Van Thien Bao, 26, received the lowest sentence, having only worked since early 4/2023 and assisted in defrauding one victim of 24 million VND. Since starting work, Bao only received lunch from the company and no salary, as he was arrested on 20/5/2023.

The judging panel delivers the verdict on 23/9. Photo: Danh Lam

The judging panel delivers the verdict on 23/9. Photo: Danh Lam

The judging panel noted that the defendants initially gave inconsistent and evasive statements. However, after their confessions, evidence, and victim testimonies were presented, they admitted to their actions.

The verdict established that the defendants exploited the victims' greed, presenting false information to lure them into high-return investments. The 19 individuals committed organized crime of a particularly serious nature, with close collaboration and assigned roles. Their methods were "extremely sophisticated," including using thousands of burner phone numbers and concealing their identities to prevent victims from reporting to the police. They also frequently changed work locations.

Their offices had no signage, employees were given fake accounts, and instructed not to interact with others during work hours or leave the office unnecessarily. Employees were provided lunch at their desks and told not to use ride-hailing services to avoid revealing the office location.

The ringleader, Duc, frequently rented luxury cars and flaunted his wealth to further the scam, the court stated.

All defendants received salaries and commissions from the defrauded money, making them liable for the damages.

According to the verdict, online international stock trading is not recognized or protected by Vietnamese law. Exploiting this lack of public awareness, the defendants created and managed English-named websites mimicking legitimate international stock exchanges to mislead investors.

These websites were pre-programmed and linked to bank accounts controlled by the defendants, with no actual connection to the global market. Clients trading forex on these platforms were essentially playing against the platform administrator (admin). When clients lost, the admin kept the money.

Client funds were deposited into accounts of 27 shell companies established by Duc and other unidentified accomplices since 2022. These companies recruited staff for various interconnected departments to lure victims into investing and then misappropriate their funds.

Pho Duc Nam, also known as Mr. Pips, oversaw the human resources, checkbill, and legal department, coordinating the flow of money through bank accounts after receiving it from victims. This department also handled recruitment for the Cambodian office.

The technology department managed over 1,000 phone numbers used for solicitation and fraud. They had 19 teams working across 14 offices, dedicated to calling and enticing potential victims. Sales staff were paid 7 million VND per month plus a 4-5% commission based on the amount they defrauded from clients.

The sales staff were young, aged 20-30, without degrees or formal training in finance or stocks, but "most had experience in enticing clients."

Skill set for extracting money from clients: The sales staff were equipped with a "skill set" for extracting money, using fake names during calls. After obtaining personal information, they assessed the client's financial capacity and personality to tailor their approach.

For initial trades, they chose profitable options, focusing on creating enthusiasm and addiction to the market. They typically allowed small profits and frequent transactions to keep clients engaged.

Once a client showed interest in a particular option, they gradually increased the volume, showing screenshots of large accounts with high profits to induce envy. If a client refused to increase their investment, the sales staff would offer fake profit support, continuing to display high-profit accounts. This process was repeated until the client increased their investment.

If a client agreed, the staff helped increase the trading volume, encouraging frequent transactions with high profits and further capital agreements. They were instructed to pressure clients between 10 PM and midnight, making frequent calls.

For experienced clients, the team provided market updates, tailored trading advice, and shared trading tips. If a client's account experienced issues, they calmed the client, explaining the capital needed for recovery. The sales staff pretended to co-invest when an account was at risk, fostering a sense of partnership rather than a client-advisor relationship.

Dummy groups were also mobilized to create a sense of community and inspire confidence in recovery. As a last resort, the sales staff blamed market instability rather than individual actions.

Mr. Pips directed the transfer of defrauded funds to some clients to build trust in the platform's liquidity or to other accounts as he instructed.

The investigation has so far confirmed 12 fraud cases, totaling 11 billion VND in losses.

In court, Duc claimed he was merely an employee, unaware of the fraudulent activities. He said the company encouraged him to rent luxury cars and flaunt wealth to reassure employees. Most other defendants admitted their actions, citing their young age, lack of understanding, and financial difficulties as reasons for their involvement.

The People's Procuracy deemed the defendants' actions particularly serious, characterizing them as a societal nuisance. They all received salaries and commissions from the defrauded money, warranting strict penalties.

Duc is linked to the Mr. Pips fraud ring. Mr. Pips was arrested later, in late 2024, and is being prosecuted in a separate case involving over 2,660 victims of stock investment fraud. Le Khac Ngo, also known as Mr. Hunter, is currently a fugitive. Ngo's wife was arrested in Thailand in July by Hanoi police and Interpol.

Thanh Lam