A Da Nang People's Court was packed with over 200 victims in mid-August. They had fallen prey to the "safe deposit, high interest, free gold" promises of Le Trong Linh, 36, chairman of Vietnam Capital Financial JSC, and Truong Quoc Thai, 39, the company’s director. The victims lost their life savings.

Many were elderly, some using canes, others hiding their faces with masks to avoid recognition.

Linh and Thai, dressed in button-down shirts with neatly combed hair, stood grim-faced at the defendant's podium, charged with fraud and embezzlement.

Defendants Le Trong Linh (left) and Truong Quoc Thai in court. Photo: Ngoc Hoa

Defendants Le Trong Linh (left) and Truong Quoc Thai in court. Photo: Ngoc Hoa

Linh cultivated an image of early success. In 2013, he co-founded PMW JSC, an advertising company. However, Linh and several shareholders didn't actually contribute capital, and Linh wasn't involved in the company's initial management.

In 2014, Linh arranged for someone else to take over PMW JSC shares. Two years later, he decided to solicit savings deposits, renaming the company Vietnam Capital Investment JSC, and later Vietnam Capital Financial JSC.

Prosecutors determined that Linh registered the business as a "pawn service" to conceal illegal activity, as only licensed credit institutions authorized by the State Bank of Vietnam are permitted to accept deposits.

Starting 3/2016, Linh hired staff, opened transaction offices, and launched "traditional," "daily," and "monthly" savings packages with interest rates of 5.4-8% per year. Customers received internally issued "Savings Certificates" signed by Linh or Thai and bearing the company seal. These certificates had no legal value, but misled many customers.

In November 2017, Thai was appointed director, overseeing transaction offices in Thanh Khe, Hai Chau, Son Tra, and Quang Nam, and transferring funds to Linh as needed. By 7/5/2018, the company's charter capital increased to 30 billion VND, with Linh holding 74% and Thai 3.33%.

To build credibility, Linh and Thai advertised their company as a reputable financial institution, even falsely claiming to be among the "Top 100 Brands" for several years. They promised high interest rates and promotions like "free gold, cash bonuses," with rates far exceeding commercial banks.

Hundreds of victims attended the trial. Photo: Ngoc Hoa

Hundreds of victims attended the trial. Photo: Ngoc Hoa

Their clients were mainly the elderly, homemakers, and small business owners. Treated like VIPs and initially receiving timely interest payments, they encouraged acquaintances to deposit money. Linh and Thai directly managed the transaction offices and staff. Many employees, unaware the company wasn't authorized to accept deposits, actively sought clients and received commissions.

From 2016 to 2018, 288 people deposited nearly 140 billion VND. Linh and Thai didn't use the embezzled funds for legitimate business purposes. Besides paying interest to existing customers in a Ponzi scheme fashion, they invested in stocks, loans, pawn shops, established companies, and purchased land and cars, mostly resulting in losses.

In early 2021, when customers tried to withdraw their principal, the company stalled, citing "system upgrades." Rumors of impending bankruptcy spread, leading to a rush of people demanding their money. Linh and Thai closed their offices, turned off their phones, and fled.

Hundreds of victims filed complaints with the police.

Investigators confirmed Vietnam Capital was never licensed for banking activities, making its deposit-taking illegal. The "Savings Certificates" were merely a cover-up for fraud. The total amount embezzled reached nearly 140 billion VND, with negligible recovery.

At the trial, Linh and Thai admitted to exaggerating the company's scale to attract customers. They apologized and sought leniency. However, many victims argued they had not only been defrauded of their money but also their trust, leaving many families destitute.

The court deemed the case exceptionally serious, organized, deceitful, and causing public alarm. Both defendants received life sentences and were ordered to pay nearly 140 billion VND in restitution.

But for many, that sum is now just a figure on paper.

Ngoc Truong