Hanh, 45, chairwoman of My Hanh Group Joint Stock Company, has been indicted by the Hanoi People's Procuracy for property fraud, under Article 174, Clause 4 of the Criminal Code.

My Hanh Group Joint Stock Company, established in 2017, operates in the exploitation, cultivation, and trade of Ngoc Linh ginseng. To expand production, Chairwoman Hanh and her associates sought to raise capital from investors.

According to the indictment, from August 2020 to March 2023, under Hanh's direction, the company repeatedly published false advertisements claiming to be implementing a Ngoc Linh ginseng cultivation and care project in Kon Tum and Quang Nam provinces. In reality, the company had no such project and had not signed any contracts with entities to carry it out.

Hanh organized seminars, introduced products, and urged investors to contribute capital to the company, promising high returns.

When engaging with investors, My Hanh Company offered three types of contracts: Ngoc Linh ginseng cultivation capital contribution contracts, loan agreements, and contracts for the sale of Hanh's shares in the company. The businesswoman promised annual interest rates of 24-48% to investors across these three contract types, with interest paid monthly until the contract concluded.

Chairwoman Pham Thi My Hanh before her indictment. Photo: My Hanh Group

Investigators allege that many investors, receiving high interest payments, trusted Chairwoman Hanh's commitments and continued to invest. However, Hanh simply used money from later investors to pay earlier ones, maintaining trust to prolong the fraudulent scheme.

After signing capital contribution contracts and receiving funds from investors, Hanh used a portion of the money to sign purchase, sale, and investment contracts with Win - Win Co., Ltd., Sam Sam Co., Ltd., and Tra My Agricultural Products Joint Stock Company. While these companies later obtained licenses to cultivate Ngoc Linh ginseng, the projects were not implemented. These tactics were solely designed to deceive investors into believing the project was legitimate.

Hanh used the remaining funds to pay commissions to intermediaries, return principal and interest to investors, and cover personal expenses. From November 2022 to present, My Hanh Company became insolvent, unable to repay the substantial amount of money raised from investors.

Through these schemes, from 2020 to 2023, Chairwoman Hanh allegedly signed 3,623 contracts with 1,213 investors, raising 1,279 billion VND. Of this, Hanh repaid 441 billion VND in principal to 814 investors, 164 billion VND in interest to 1,053 individuals, and provided 34 billion VND in accompanying vouchers.

Currently, the Procuracy has identified 2,346 contracts from 1,093 investors, totaling over 850 billion VND, that Hanh has not yet settled.