The Masterful Con: How a Crafty Couple Swindled Hundreds in Binh Duong, a Costly Lesson for Many Land Investors

According to the indictment, Son purchased four agricultural land lots totaling over 2 hectares in Thuân An City. He then created the Phu Son 1 project, dividing it into 174 plots, and collaborated with Ha Huy Binh, the deceased director of Dat Viet Company, to sell them, collecting VND 17.5 billion from 41 people.

Not stopping there, in 2018, Son and Loan continued to fabricate the Chanh Phu Hoa project in Ben Cat City on agricultural land, collecting more than VND 24 billion from 29 victims through Binh, along with an additional VND 600 million from two direct contracts.

In total, the trio embezzled over VND 37 billion, with Son and Loan responsible for more than VND 7 billion. The rest was held by Binh before his death, leaving many victims in debt and penniless.

The case of Son and Loan is not an isolated incident in Binh Duong. In 2024, investigative authorities initiated prosecutions against several leaders of other real estate companies for similar offenses. For instance, Ngu Thanh Phuong of Hau Dat Real Estate Company was arrested for illegal capital mobilization, causing significant losses to investors. Subsequently, Nguyen Duc Trung, a leader of Bao An Group Joint Stock Company, was also prosecuted for promoting non-existent projects and embezzling billions of dong from gullible individuals.

Ton Lam Sy of A Chau Real Estate Company faced legal consequences for illegally subdividing and selling land plots without the requisite legal documentation, causing financial losses to many individuals. Additionally, Vi Van Dung of Mien Nam Real Estate Company is currently a fugitive, leaving dozens of investors to deal with severe consequences.

These cases highlight the alarming prevalence of real estate fraud in Binh Duong, stemming from legal loopholes and a lack of awareness among the populace. In reality, many investors, enticed by the prospect of high profits, willingly accept the risks associated with purchasing land lacking the necessary legal documentation, inadvertently providing opportunities for malicious entities to exploit.

To circumvent the law, companies often engage in illegal capital mobilization or change the land’s purpose, rendering project completion impossible and inflicting substantial losses on customers while destabilizing the market.

The authorities in Binh Duong have taken decisive action by implementing land expropriation and account freezing measures to retrieve the victims’ money. However, compensation faces challenges as many accused individuals have squandered the fraudulently obtained assets. Speaking to the media, Colonel Tran Van Chinh, Deputy Director of Binh Duong Provincial Police, asserted that victims’ rights would be addressed through civil proceedings.

However, if the project is transferred to a new investor, subsequent agreements fall beyond the jurisdiction of the authorities, leaving victims dependent on their negotiation skills with the new developer.

In light of these circumstances, investors must remain vigilant. While the real estate market offers potential, it is also fraught with risks in the absence of stringent control. To safeguard their investments, buyers should diligently verify the project’s legal documentation, including building permits, land use rights, and approved planning. Consulting experts before making transactions is always advisable.

Extraordinary promises of abnormally high profits or unbelievably low prices are often telltale signs of fraudulent “phantom projects,” requiring a clear head to avoid falling into such traps. Furthermore, the recent land price surge fueled by rumors of provincial mergers has caused market fluctuations, with prices exceeding their actual value. Investors should refrain from succumbing to herd mentality or false advertising, as this is the key to safeguarding their assets and minimizing losses in today’s volatile market.