On 26/7, 50-year-old Hung and 42-year-old Nguyen Phi Chau, the deputy director, were arrested by Lam Dong Provincial Police for alleged fraud and asset appropriation.
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Nguyen Khac Hung (second from right) at the time of the arrest announcement. Photo: Le Tien |
Nguyen Khac Hung (second from right) at the time of the arrest announcement. Photo: Le Tien
According to the investigation, Nam Ban Silk Co., Ltd., located in Nam Ban commune, Lam Ha district, specialized in silk and silkworm cocoons. However, it ceased production and suspended operations in 11/2023. Despite this, Hung signed 20 raw silk export contracts with seven foreign companies. He then instructed Chau to forge delivery documents, deceiving the partners into transferring deposits and payments.
Hung allegedly misappropriated tens of billions of dong for personal use, according to the investigative agency.
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Nguyen Phi Chau (second from left) at the prosecution announcement. Photo: Le Tien |
Nguyen Phi Chau (second from left) at the prosecution announcement. Photo: Le Tien
Authorities are expanding the investigation into potentially fraudulent contracts involving Nam Ban Silk, which have caused losses for numerous foreign partners. To clarify the case and protect the victims, the investigative agency is urging affected businesses to contact Lam Dong Provincial Police.
Nam Ban Silk was once a prominent player in Vietnam’s silk industry, particularly in the Lam Ha region of Lam Dong province. The company's cocoon and silk products were exported to and valued in various markets, including India, China, Taiwan, the Middle East, and Europe.
Le Tien - Truong Ha
