Pham Thi Huong, 44, of Binh Minh commune, was arrested on August 10 by the Nghe An Provincial Police's Criminal Investigation Department. She faces charges of fraudulent appropriation of property under Article 174 of the Penal Code, and has been temporarily detained for investigation.

Suspect Huong at the investigative agency. Photo: Hoa Vang

The investigation revealed that Huong, a seafood trader, began her scheme in 2025. Facing significant business losses and mounting debts, she rented a property and opened a seafood store in Binh Minh commune (formerly part of Yen Thanh district). This establishment served as a facade for her fraudulent plan.

Huong repeatedly solicited funds, claiming they were needed to import seafood. She promised "investors" substantial returns: approximately 80 million VND for every one billion VND invested, to be paid within 5-10 days after successful delivery, which she claimed would occur within 5-30 days.

To gain trust, Huong fabricated hundreds of tons of fake orders, presenting them to her targets. Convinced by her scheme, many individuals transferred over 50 billion VND to Huong as business capital.

Huong's seafood business in Binh Minh commune. Photo: Hoa Vang

Instead of using the funds for seafood imports as promised, Huong diverted the money for personal use. By late May, she ceased payments and severed all communication with her "investors."

Victim complaints prompted a police investigation.

Investigators revealed Huong's method: initially, she repaid both principal and high profits on schedule to new investors, establishing credibility. Once trust was built, she presented various pretexts to solicit larger investments. This led many victims to commit additional personal funds, and even borrow from friends, hoping for greater returns.

Huong has a prior conviction for organizing and brokering illegal emigration or stay abroad, for which she is currently serving a suspended sentence.

Duc Hung