The Investigation Police Department on Corruption, Economic, and Smuggling Crimes (C03) under the Ministry of Public Security recently issued a supplementary investigation conclusion. It proposes prosecuting Shark Thuy, Chairman of the Board of Directors and General Director of Egroup Education Group Joint Stock Company, for "fraudulent appropriation of property" and "giving bribes."

In the same case, Tong Thi Kim Lien, Chairwoman of the Board of Directors and Chief Financial Officer of Nhat Tran Company, faces charges of "receiving bribes." The remaining 26 individuals, including accountants and business managers of Egame Company, are accused of "fraudulent appropriation of property."

During the case resolution, the People's Procuracy requested the collection of legally effective civil judgments and decisions concerning contract liquidation between investors and the accused.

The supplementary investigation determined that from August 2023 to January 2024, the Hanoi People's Court and 12 district-level People's Courts handled, tried, and issued 22 legally effective civil judgments. Among these, 18 judgments involved 21 victims. Additionally, there were two decisions recognizing agreements between parties, which hold the same enforcement value as judgments, related to two victims. Six decisions also suspended the resolution of civil cases involving Egame Company.

On 27/7, C03 sent a document requesting the Chief Procurator of the Hanoi People's Procuracy and the Chief Justice of the Hanoi People's Court to appeal for retrial against the 18 judgments and two agreement recognition decisions. One month later, the Hanoi People's Court issued a decision to annul all 18 judgments and two decisions.

C03 identified the 23 related investors as victims in this case, from whom Shark Thuy and his accomplices allegedly appropriated a total of 41.2 billion VND. The annulment of these civil judgments and decisions changes the previous basis for resolution for these 23 investors, ensuring their rights are now considered within the criminal case as victims.

Shark Thuy before his arrest. *Photo: Egroup*

Accused embezzlement amount increases to 8,459 billion VND

Following a review and recalculation of the number of victims and damages, C03 determined that the number of victims increased by 60, bringing the total to 10,123. The total amount Shark Thuy is accused of appropriating increased from 7,677 billion VND to over 8,459 billion VND.

According to the investigation conclusion, Egroup operated as an ecosystem with 20 subsidiaries, serving as a central hub for mobilizing, coordinating, and investing capital. The investigative agency found this ecosystem relied heavily on financial leverage, utilizing the Apax Leaders English system to promote its image and build trust, thereby attracting capital from investors.

The accusation states that Shark Thuy directed employees to disseminate false information regarding investment activities, business plans, and potential profits to entice customers to purchase shares. He did not use the mobilized money for its intended purpose. Instead, when a new investor contributed funds, 70% of that money was used to repay old debts of customers managed by the same employee, with the remaining 30% submitted to the company.

The investigative agency stated this operational method aimed to maintain cash flow and avoid detection. He managed and monitored mobilized funds separately, not recording them in tax reports and financial statements submitted to authorities. Currently, Egroup and Egame face significant financial imbalances and are unable to make payments to investors.