This marks the second time "Shark" Thuy, Chairman of the Board of Directors and CEO of Egroup Education Group Joint Stock Company, has been indicted by the Supreme People's Procuracy. The charges are fraudulent appropriation of assets and giving bribes.

In the same case, Tong Thi Kim Lien, Chairwoman of the Board of Directors and CFO of Nhat Tran Company, faces charges of receiving bribes.

The remaining 27 individuals, including accountants and sales managers of Egame Company, are indicted for fraudulent appropriation of assets. The Hanoi People's Court will try the case.

Compared to the previous indictment, the number of victims allegedly defrauded by "Shark" Thuy has increased by 60, totaling 10,123. The total amount Thuy is accused of appropriating rose from 7.677 billion VND to over 8.459 billion VND. The amount "Shark" Thuy allegedly bribed remains unchanged at 32 billion VND.

According to the indictment, since 2014, "Shark" Thuy directed employees to inflate Egroup Company's charter capital. This was done to repay debts, for personal use, and to maintain the business operations of the Egroup ecosystem. Subsequently, he fictitiously transferred shares to investors.

Following "Shark" Thuy's directive, CFO Nguyen Manh Phu and Chief Accountant Pham Thi Thanh Tho inflated Egroup's charter capital and shares from 32 billion VND to 962.5 billion VND. This group also created fictitious revenue, approximately 70% of annual revenue, to build the image of a large company.

After attracting investors, "Shark" Thuy would transfer a certain number of shares to them at 38,000 VND per share. Thuy committed to repurchase these shares after one year at 42,000 VND per share, in exchange for investors authorizing him with all shareholder rights and obligations.

However, from 2021 to 2023, English centers and kindergartens closed down. Incoming funds were insufficient to cover expenses and maturing contracts. Consequently, Thuy allowed 23 managers and team leaders, overseeing 341 sales staff, to use 70% of new customer funds to pay old creditors. The remaining 30% was submitted to the company.

From 2015 to 2023, defendant Thuy and his accomplices appropriated 8.459 billion VND from 10,123 victims.

Additionally, from 8/2023 to 1/2024, the Hanoi People's Court and 12 regional people's courts processed, tried, and issued 22 effective civil judgments. Among these were 18 judgments involving 21 victims, two decisions recognizing agreements between parties, and six decisions dismissing civil cases related to Egame Company. Following a request, the Hanoi People's Court issued a decision to annul all 18 judgments and the two decisions.

Thuy before his arrest. Photo: Egroup

"Shark" Thuy used his wife to register and mortgage victims' real estate

Supplemental investigation documents reveal that seven victims agreed to sign real estate transfer contracts as requested by Egame Company to designated individuals. After the transfer, six individuals received strategic cooperation agreements for Egroup Company shares from Egame Company. One other victim transferred two real estate properties, exchanging them for bonds of Igarten Transaction Development Joint Stock Company.

Regarding procedures for 28 real estate properties, authorities clarified that from 8/2016 to 6/2021, five notaries notarized the transfer and authorization of 28 real estate properties from 29 victims to three companies and seven individuals.

During the notarization process, the legal status of the real estate was checked, parties presented documents, and procedures were followed. Participants in the transaction had legal capacity, signed voluntarily, and showed no signs of deception or coercion during notarization. The five notaries did not benefit from these transactions and were thus not subject to criminal charges.

Furthermore, at Thuy's direction, nine individuals signed transfer and mortgage contracts for 32 real estate properties to be registered with banks. Among them, Le Thi Thanh Hien, defendant Thuy's wife, and Egroup Deputy CEO Nguyen Ngoc Khanh signed contracts to receive the transfer of six real estate properties from nine victims. The two then signed mortgage contracts for these properties with banks.

Investigation results determined that Hien and Khanh were unaware of and not involved in Thuy's fictitious share sales to investors for appropriation of funds. Hien, Khanh, and the individuals who registered as recipients of the victims' real estate transfers did not benefit, so the police did not consider criminal liability.