The Supreme People's Procuracy has indicted 16 individuals, including Le Thuy Hang, the former CEO of Saigon Jewelry Company (SJC), on charges of embezzlement and abuse of power. Hang is accused of manipulating the subsidized gold market for personal gain.

To stabilize the gold market and reduce the gap between domestic and international prices, the State Bank of Vietnam (SBV) began intervening in the SJC gold bar market on 3/6/2024. This was done by selling gold directly to 4 state-owned commercial banks and SJC, which would then sell to the public.

These 4 banks and SJC were permitted to trade gold among themselves but were prohibited from selling SBV-sourced gold to other organizations. The recommended selling price was to be no higher than the average purchase price from the SBV, plus one million VND per tael (approximately 37.5 grams).

The SBV instructed SJC to "strictly adhere to the daily selling price of SJC gold bars" when selling directly to the public from the SBV's supply. The SBV also mandated that "all SJC stores must sell at the correct price and publicly display the selling price transparently."

Gold bars at SJC headquarters in Ho Chi Minh City, 3/2025. Photo: Quynh Tran

Gold bars at SJC headquarters in Ho Chi Minh City, 3/2025. Photo: Quynh Tran

Hang allegedly exploited her position to sell subsidized gold illegally. She instructed Tran Ngoc Minh Thu, head of SJC's gold trading department, to sell only a portion of the subsidized gold to customers at SJC stores.

Hang allegedly ordered the remaining gold to be sold on the black market at higher prices, pocketing the difference. "This violated the SBV's regulations on selling subsidized gold," the indictment states.

Following Hang's directives, Thu coordinated with two subordinates to carry out the scheme. Daily, the gold trading department would tally the amount of gold repurchased from customers and the amount requested by Thu's clients.

Thu would then inform her subordinates of the quantity needed for these preferred clients, leading to the creation of fake subsidized gold purchase orders for fictitious individuals. The names and addresses on these orders were fabricated. Each fake customer had an order for 1 to 2 taels, complying with the subsidized gold sale regulations. These orders were then officially signed and issued.

The fraudulent orders were passed to SJC's gold bar management staff in the trading department to issue invoices and release the gold. The gold was then delivered directly to Thu's clients within the trading department, and payment was received there.

The group deposited the portion of the proceeds reflecting the subsidized price (corresponding to the fake purchase orders) into SJC's treasury. The remaining profit was allegedly delivered to Hang.

Investigators determined that between 20/7/2024 and 30/8/2024, Thu oversaw the creation of 591 fake gold purchase orders for 591 fictitious customers. This resulted in the diversion of 883 taels of SJC gold bars, listed at 69 billion VND, which were sold on the black market at inflated prices. Of the 400 million VND profit, Hang allegedly took 330 million VND, and Thu received 70 million VND.

Capitalizing on SJC's authorized role in the subsidized gold program, Hang also allegedly directed the directors of SJC's Central and Hai Phong branches to compile lists of fake customers to further divert subsidized gold for profit.

Le Thuy Hang, CEO of SJC, at a press conference on the afternoon of 16/5. Photo: An Phuong

Le Thuy Hang, CEO of SJC, at a press conference on the afternoon of 16/5. Photo: An Phuong

At the Hai Phong branch, between 14/6/2024 and 27/8/2024, branch director Nguyen Thi Hue and her staff created a list of 1,711 fictitious customers under Hang's direction. This allowed them to divert 2,820 taels of subsidized gold, officially valued at 221 billion VND.

Hue illegally sold 918 taels to 16 customers, receiving 74 billion VND into her personal bank account. She and Hang allegedly split the 1.1 billion VND profit.

The remaining 1,902 taels were also sold illegally, but due to a lack of records, the buyers and the exact value of these transactions remain undetermined. Hue also purchased gold at the subsidized price for relatives and acquaintances without personal gain.

At the Central branch, director Hoang Le Hue, also following Hang's instructions, sold only some subsidized gold legitimately while diverting the rest to the black market. Hang and Hue then allegedly shared the profits.

Between 19/6/2024 and 30/8/2024, Hue directed staff to release 2,408 taels of subsidized SJC gold bars to subordinates for illicit sale, generating over 4.1 billion VND in profit. To cover their tracks, the group created invoices for 1,500 fictitious customers.

Seeing the ease of profit from this scheme, on 17/6/2024, Hue encouraged 25 employees of the Central branch to contribute a total of 53 taels of gold to sell on the black market. She then instructed staff to use fake customer names to repurchase this gold at the subsidized price, creating a cycle of illicit sales and repurchases for further profit.

Hue personally profited 2.2 billion VND from this scheme, while Hang allegedly received 1.9 billion VND. In total, Hang allegedly benefited by 73.5 billion VND.

During the investigation, authorities seized 429.55 taels and 1,095.88 grams of gold, along with 28.4 billion VND surrendered by the accused and related individuals. Six properties belonging to Hang and two apartments owned by Phat were also seized.

=>> List of 16 defendants

Pham Du