Unscrupulous Female CEO of Counterfeit Herbal Product Scheme Arrested in Đắk Lắk: Outrageous Claims of 300 Villa Giveaway to Top-Performing Distributors

In a recent development, Dak Lak provincial police have arrested and detained Ms. Nguyen Thi Hoi (DOB: 1983), director of Tran Kim Huyen Co., Ltd., for producing and trading counterfeit goods, including fake food products. Ms. Hoi caused a stir by publicly promising to gift 300 million-dollar villas to outstanding leaders in her distribution system.

Female Director Arrested, Thousands of Counterfeit Products Seized

According to authorities, at Tran Kim Huyen Co., Ltd., managed by Ms. Hoi, the police discovered and confiscated 1,608 products, including various types of Tran Kim Huyen-branded herbal bone and stomach supplements, massage oils, and oral care products. Notably, these products not only failed to meet quality standards but also provided misleading information about their place of manufacture. Specifically, the labels and packaging claimed they were produced by the Center for Applied Science and Technology of Medicinal Materials in Hanoi without the consent of this unit.

The investigation revealed that nearly 1,400 products failed to meet quality standards, with over 840 items identified as counterfeit in terms of origin. The police also seized a large number of raw materials, packaging, and labels without invoices or documents proving their origin. These violations not only harm consumers’ health but also erode trust in the herbal products market, an industry that has long been trusted by consumers.

The “Phantom” Villa Project

To attract people to her distribution system, Ms. Hoi aggressively advertised on social media about gifting 300 million-dollar villas to leaders with high sales achievements. As an influential figure on social media, Ms. Hoi utilized her personal account with a large following to lure people into her scheme.

From 2021 to 2024, she frequently shared images and posts about awarding land certificates to efficient agencies. These posts not only showcased the success of the leaders but also portrayed a glamorous image of a wealthy and prosperous life.

In 2023, Ms. Hoi announced a project of 300 villas in Yang Reh commune, Krong Bong district, with a total area of over 25 hectares. She claimed that this project had been her dream for the past six years and was expected to be completed in ten years. To build trust, she organized a grand groundbreaking ceremony in October 2023, attracting many participants. However, the authorities identified this as a “phantom” project with no approved investment decisions or policies.

Mr. Nguyen Ngoc Phap, Vice Chairman of Krong Bong District People’s Committee (Dak Lak province), confirmed that the area Ms. Hoi advertised does not have any existing projects. In reality, the land area she mentioned is only a few hundred square meters, and no real estate projects are being developed there. This incident has caused confusion in the community and underscores the importance of regulatory authorities in controlling and handling fraudulent business practices to protect consumers.

Ms. Hoi was arrested not only for producing counterfeit goods but also for making unrealistic promises that deceived many people into joining her distribution system. This case serves as a wake-up call for those seeking easy business opportunities and a reminder of the responsibility of enterprises in producing and distributing goods. The authorities are continuing their investigation to thoroughly handle the case and strictly deal with related violations of the law.

Trang Dao