“Scam Kingpin Behind Dozens of Fake Companies Linked to Mr Pips Sentenced”

On September 23, the Hanoi People’s Court sentenced 19 defendants in a large-scale international stock and financial fraud case led by Bui Trung Duc (born in 1992, residing in the former Thu Duc District, Ho Chi Minh City) and his 18 accomplices.

Duc was identified as a key link in the fraud network operated by Mr. Pips (Pho Duc Nam, born in 1994, from the former Ba Ria – Vung Tau Province) and Mr. Hunter (Le Khac Ngo, born in 1990, from the former Bac Tu Liem District, Hanoi).

The Hanoi People’s Court sentenced Bui Trung Duc to 18 years in prison and Thai Anh Dao (born in 2001, from the former Thu Duc District) to 16 years in prison, both for “Fraud to Appropriate Property.” The remaining defendants received sentences ranging from 10 to 15 years for the same offense.

According to the first-instance judgment, the defendants colluded with individuals outside Vietnam. During the operation, the masterminds provided pre-written scripts, used false information, and posed as customer service representatives to gain victims’ trust by offering enticing deals.

The indictment revealed that since 2022, Bui Trung Duc and his accomplices organized a sophisticated and well-structured international stock investment fraud scheme. They established dozens of shell companies and divided their operations into specialized departments such as accounting, human resources, IT, sales, and customer service. These departments operated independently but coordinated closely to execute the fraud and embezzle assets from hundreds of victims.

Despite lacking financial licenses, the group offered investment consulting services and lured individuals into participating in an “international stock exchange” via the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. Websites like ZenoMarkets, Londonex, CHMarkets, TradeTime, LPLTrade, and DexInvesting were designed to mimic legitimate international platforms. In reality, these were pre-programmed websites with no connection to global financial markets, linked to bank accounts controlled by the fraudsters.

Sales agents created accounts for investors, guided them in depositing margin funds, and executed trades. Initially, victims were allowed to win small trades and withdraw funds easily to build trust. Later, they were enticed to deposit larger amounts with promises of high returns. Once substantial funds were deposited, the accounts were manipulated, leading to significant losses.

Notably, the sales team required no financial qualifications or training. They simply memorized prepared scripts and exploited victims’ desire for quick profits and easy withdrawals. Each salesperson earned a base salary of approximately 7 million VND per month, plus a 4-5% commission on sales. High-performing agents were rewarded and encouraged to recruit more victims.

To conceal their activities, the group established at least 27 companies. Some, like USIN VN LLC, INVESTO LLC, and Tanhi LLC, were used for recruitment. Others, such as Eros Vietnam and Sunrise Media, were used to sign contracts for server rental, call data storage, and phone number leasing for the Zoiper communication app. Additional companies like Rowna, Audrey, Ambrose, DVA, Uni VN, Sysnet VN, and Sodial VN were created to open multiple bank accounts under corporate names, facilitating money laundering.

The group rented at least 15 offices in Ho Chi Minh City and the former Binh Duong Province, primarily in prominent buildings like Metro Tower, M Building, and Rubicon, as well as several apartments. These offices had no signage, and employees used anonymous accounts and moved discreetly to avoid detection.

All company registrations, ownership changes, and bank account openings were handled through intermediaries for $1,000 per file, based solely on verbal agreements without formal contracts, to leave no legal trace.

When victims transferred funds, the sales team sent receipts, which were verified by the support team before being confirmed by the checkbill group via a link. The funds were then distributed according to Pho Duc Nam’s instructions, who managed operations in Vietnam. Small amounts were often returned to victims to maintain trust, while the majority was transferred to other accounts.

The embezzled funds were laundered through various methods: converted to cash, purchased as gold from stores, or exchanged for USDT cryptocurrency to avoid tracing. A portion was used to pay employee salaries, bonuses, and office rent.

Between December 2022 and May 2023, numerous individuals in Hanoi and other provinces fell victim to fraud schemes disguised as platforms like Londonex, CHMarkets, ZenoMarket, LPLTrade, and TradeTime. The defendants embezzled over 11 billion VND from 12 victims by enticing them to invest, transfer funds through shell companies, and then manipulating their accounts. Bui Trung Duc profited over 1.3 billion VND, while Thai Anh Dao received 100 million VND.