On 22/9, the Hanoi People's Court continued the trial of 20 defendants in a fraud ring operating under the guise of Forex investments. The defendants, aged 20 to 30, were led by 33-year-old Bui Trung Duc from Ho Chi Minh City.

Duc's group was part of a larger fraud ring involving Mr. Pips (Pho Duc Nam) and Mr. Hunter (Le Khac Ngo) – currently under investigation by Hanoi police for fraud and money laundering.

Authorities have determined that online international stock trading platforms are not yet recognized or protected under Vietnamese law. Exploiting this legal gray area and public unfamiliarity, the defendants created and operated websites with English names similar to 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 global markets. Customers trading forex were essentially playing against the platform administrators. When customers lost, the administrators pocketed the money.

Customer deposits were funneled into accounts held by 27 shell companies established by Duc and several unidentified accomplices since 2022.

Duc managed the Ho Chi Minh City offices and implemented strict rules. Employees received pseudonymous accounts and were instructed to avoid outside contact, remain in the office unless absolutely necessary, and use personal vehicles instead of ride-hailing services to conceal office locations. They were provided with laptops, headsets, and catered lunches.

Bui Trung Duc (second from right) and his accomplices upon arrest. Photo: Police Department

Bui Trung Duc (second from right) and his accomplices upon arrest. Photo: Police Department

Duc demanded regular performance reports from employees and enforced penalties or dismissal for violations or unmet targets. He claimed to "inspire" his team by highlighting high-performing individuals and groups, emphasizing large bonuses and rapid promotions. This tactic aimed to reinforce trust in the company's methods and encourage aggressive client recruitment.

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

The investigation has so far confirmed 12 cases of fraud, totaling 11 billion VND. The largest individual loss was suffered by a 66-year-old woman in Hoang Mai, Hanoi, who was defrauded of over 6.7 billion VND.

In court, Duc claimed to have been recruited by a "foreign company." He professed ignorance of his salary, start date, the company's structure, or the specific duties of his colleagues, remembering only his role as an "inspiration" to employees.

He denied managing any branch, claiming each department operated independently under pre-defined company guidelines. Despite repeated questioning about his instructions to employees regarding the use of fake names, burner phones, and misleading investment advice, Duc insisted he merely "followed company regulations" and gave "no instructions."

Before his arrest, Pho Duc Nam (Mr. Pips) frequently flaunted supercars, cash, and gold on social media. Photo: Mr. Pips' Facebook

Before his arrest, Pho Duc Nam (Mr. Pips) frequently flaunted supercars, cash, and gold on social media. Photo: Mr. Pips' Facebook

Duc repeatedly feigned ignorance of the fraudulent nature of the operation, stating, "I only learned about it in court." He downplayed his relationship with Mr. Pips, describing him as a mere colleague with whom he occasionally dined but never discussed work. He denied receiving any instructions from or working with Mr. Pips.

Duc displayed indifference, stating, "When I was arrested, no one in the forex industry had been arrested, so I didn't know I was breaking the law." Regarding the defrauded funds, he responded, "The court tells me so, I don't know." The presiding judge reprimanded Duc for his evasiveness, questioning his sincerity in pleading guilty and offering restitution.

When pressed about his "inspirational" activities, Duc described casual morning coffee chats with employees. The court and prosecution pressed further, revealing seized training materials outlining fraudulent schemes, including "new employee training programs," "customer closing procedures," and "lessons to lure clients into traps."

Confronted with these documents, Duc continued to deny knowledge, attributing their creation to others. The prosecution cited Duc's prior confessions, in which he admitted to knowing the operation was fraudulent from the outset and overseeing 11 branches, with the 20 defendants belonging to just one of them.

Duc admitted that the company leased over 1,000 phone numbers for hundreds of employees to solicit and deceive clients. He instructed staff to use fake identities to prevent clients from reporting to authorities. The group also admitted to fabricating "successful stock market figures" to entice investment and motivate employees.

A collection of supercars worth hundreds of billions of VND seized in the Mr. Pips case. Along with real estate and gold, investigators determined that as of 26/12/2024, the total assets recovered in the case amounted to over 5,300 billion VND. Photo: Huy Manh

A collection of supercars worth hundreds of billions of VND seized in the Mr. Pips case. Along with real estate and gold, investigators determined that as of 26/12/2024, the total assets recovered in the case amounted to over 5,300 billion VND. Photo: Huy Manh

When questioned about the 5 supercar keys (Mercedes, Ferrari, and Porsche) found in his possession, Duc claimed they were borrowed. The judge challenged the need for such a display of wealth, given the remote nature of client interactions. Duc replied, "I had to promote myself as wealthy so that employees would be fully committed." The court confirmed Duc's role in creating a facade of luxury to encourage fraudulent activities. Of the 11 billion VND defrauded in the 12 cases, Duc received the largest share: 1.35 billion VND in salary and commissions over 10 months.

The court noted that Mr. Pips (Pho Duc Nam) had been summoned but failed to appear. Arrested after Duc’s group in late 2024, Mr. Pips is being prosecuted for defrauding over 2,660 stock market investors. Le Khac Ngo (Mr. Hunter) remains a fugitive, while his wife was recently apprehended in Thailand by Hanoi police and Interpol in July.

46 sales employees and dozens of related individuals were summoned, but their cases were separated due to insufficient evidence for immediate prosecution.

The trial is ongoing.

Thanh Lam