On 3/12, the Criminal Police Department, Ministry of Public Security (C02), announced that 28 individuals have been indicted for investigation into charges of usury in civil transactions, unlawful detention, property robbery, organizing gambling, gambling, and illegal trading, storage, and use of narcotics.

The ringleaders of the operation. Photo: Public Security

According to the police, this gang was led by Nguyen Van Hai, Nguyen Van Quang, Bui Van Hai, and Nguyen Ngoc Huong. It operated as a secret society with characteristics of an organized crime group, ready to use weapons and force to resolve disputes and collect debts. The group typically offered high-interest unsecured loans in Ho Chi Minh City and southern provinces, with interest rates ranging from 240% to 670% per year.

To attract borrowers, they ran advertising apps, posted on social media, distributed flyers, and opened pawn shops to conceal their illicit activities.

When borrowers were late on interest or principal payments, the gang would call and text abusive messages to their family members and colleagues. They would also threaten, intimidate, throw dirty substances, or abduct and beat borrowers to force repayment. Despite operating in various locations, the gang maintained strong connections, with suspects introducing borrowers, collecting debts, and circulating money among themselves.

The gang targeted small and medium-sized traders and business households. Prospective borrowers needed to have a fixed residence and workplace, with loan amounts ranging from 5 million dong to 1,5 billion dong per transaction. Borrowers only needed to provide their address, workplace, citizen identification card, and a video of their face.

Loan types included "standing loans" (daily interest payments until the principal is repaid), "daily installment loans" (daily payments of interest and a portion of the principal over an agreed period, typically 24 days), and "upfront interest loans" (interest collected in advance and directly deducted from the principal transferred to the borrower, with loan terms usually 2-10 days).

Authorities accuse Huong’s group and its accomplices in Ho Chi Minh City not only of usury but also of unlawful detention and property robbery. When debtors failed to repay interest and principal, the gang would send their subordinates to repeatedly send threatening messages, beat, detain, and rob the borrowers.

Some of the defendants in the case. Photo: Public Security

Following instructions from Senior Lieutenant General Nguyen Van Long, Deputy Minister of Public Security, C02 coordinated with relevant units to conduct simultaneous raids on 17/9 in Ho Chi Minh City, Hai Phong, Can Tho, Dong Nai, and An Giang. Police seized 144 citizen identification cards, 4 iron rods, a stun gun, 3 machetes, and thousands of advertising flyers.