On the morning of 8/7, following a multi-day trial held at Detention Center No. 2 of Dong Thap Province Police, the Supreme People's Court in Ho Chi Minh City announced the appellate verdict for 111 defendants from Phap Viet Law Co., Ltd. on charges of extortion.

Two years prior, this organized network gained notoriety for employing mafia-style tactics to extort over 456 billion VND from 172,629 individuals who had borrowed money from banks or financial companies.

The appellate trial, held at the detention center, spanned several days. Photo: Hoang Nam

The judging panel acknowledged new details regarding the defendants' personal circumstances and their partial or full restitution of illegally obtained funds. However, the court emphasized the gravity of the organized, multi-year criminal operation and the substantial amount of money extorted.

Tran Van Chau and Ho Quoc Hung were identified as the ringleaders. They established Phap Viet Law Co., Ltd., recruited hundreds of employees, and appointed team leaders and managers to pursue debt collection through unlawful means, prioritizing profit maximization.

Between 1/1/2021 and 14/2/2023, despite the ban on debt collection services, Chau and Hung signed contracts with seven banks and financial companies under the guise of legal consulting, effectively operating a debt collection service. The partners agreed to pay Phap Viet Law Co., Ltd. between 18% and 50% of the recovered funds, depending on the duration of the outstanding debt.

Chau and Hung organized a network of 20 team leaders and 579 employees. These groups received specialized training in a three-tiered intimidation system, ranging from verbal abuse and death threats against family members to delivering funeral wreaths, gas cylinders, and gasoline to the borrowers' homes.

In total, the network targeted 172,629 borrowers, extorting over 456 billion VND. The financial institutions paid over 168 billion VND in service fees. Around 72 billion VND went toward employee salaries. Tran Van Chau profited 15 billion VND, while Ho Quoc Hung gained 12 billion VND.

Tran Van Chau at the appellate trial. Photo: Hoang Nam

The court stated that the defendants' actions significantly disrupted social order and violated the property rights of tens of thousands of citizens. Given the nationwide proliferation of debt collection companies operating under false pretenses, the case demanded a firm response to deter similar crimes.

At the appellate trial, although the two masterminds each voluntarily paid 500 million VND in restitution, the judging panel deemed this amount insignificant compared to their illicit gains. Their leading roles in the crime, which involved over 100 other individuals, were also heavily considered.

The appellate court upheld the original sentences: 19 years for Tran Van Chau and 18 years for Ho Quoc Hung. Twenty-two other defendants received sentences ranging from two years' probation to 13 years in prison. Sentences for several team leaders involved in aiding the scheme were increased following the prosecutor's appeal.

Four female defendants with young children and limited involvement received suspended sentences to care for their children, demonstrating leniency under the law.

Additionally, appellate proceedings were suspended for 43 defendants who withdrew their appeals or had their appeals withdrawn by the prosecutor's office. Appeals were denied for 44 other defendants, upholding their original sentences.

Tran Van Chau (far right) with accomplices at the appellate trial. Photo: Nam An

In the initial trial in August 2024, the Tien Giang Provincial People's Court ordered the defendants to return all illegally obtained funds. Chau was ordered to repay 15 billion VND, and Hung 12 billion VND.

Following the initial verdict, over 100 defendants appealed for reduced sentences, probation, or reconsideration of the deemed illicit profits. The prosecutor's office also appealed for increased sentences for 49 individuals.

Nam An