Female Chairwoman Bribed to ‘Beautify’ Financial Reports for ‘Shark Thuy’
The Police Investigation Agency for Corruption, Economic, and Smuggling Crimes (C03) – Ministry of Public Security has completed the investigation and transferred the case file, proposing to prosecute Mr. Nguyen Ngoc Thuy (Shark Thuy), Chairman of the Board and CEO of Egroup Education Group, along with Nguyen Manh Phu, Chief Accountant of Egame Investment and Distribution JSC, for bribery and fraud to appropriate property.
Additionally, 26 Egame employees are also proposed for prosecution on charges of fraud to appropriate property. Meanwhile, Mrs. Tong Thi Kim Lien, Chairwoman and CFO of Nhat Tran Trading and Service JSC, is proposed for prosecution on bribery charges.
According to the investigation, Mr. Thuy is accused of directing his subordinates to inflate the charter capital, create fictitious revenue, and advertise falsely to attract investors to buy Egroup shares. Through these schemes, Mr. Thuy and his accomplices are determined to have appropriated 7.677 trillion VND from over 10,000 investors.
The investigation revealed that since 2016, to portray Egroup as a large-scale and efficiently operating corporation, Mr. Thuy approached Mrs. Lien – the leader of Nhat Tran Company, a company with an annual revenue of 2 trillion VND from phone cards in Ho Chi Minh City, to “run” fictitious revenue for Egroup. The revenue needed to be “beautified” was only a few hundred billion VND annually, so the two parties quickly agreed.
Mrs. Lien agreed to participate on the condition of receiving a 2% reconciliation fee on the total fictitious revenue, and this amount must be paid off the books. Additionally, Egroup had to return the profit from the phone card business that Egroup was recorded on paper (0.053 – 0.354% of revenue) to ensure Nhat Tran still showed profit on the report. Furthermore, Egroup had to pay an additional bank transaction fee of 0.03% on the entire cash flow between the parties.
In reality, Egroup did not engage in any sim card business, only signing fake contracts to create a money flow, thereby legitimizing the fictitious revenue on the financial reports.
From December 14, 2016, to September 15, 2021, Mrs. Lien is accused of directing her staff to create 12 non-existent economic contracts, issue fake VAT invoices, helping Egroup record a total of over 2.327 trillion VND in fictitious revenue. From 2016 to 2021, Egroup’s phone card sales revenue was over 2.327 trillion VND, accounting for 70% of the total revenue on the company’s financial reports.
According to the agreement, to “receive” this revenue recognition, Mr. Thuy had to pay approximately 46 billion VND to Mrs. Lien. However, in 2021, when Egroup no longer had cash flow from new investors, Mr. Thuy had only transferred nearly 32 billion VND, with over 14 billion VND still unpaid.
Working with the investigation agency, Shark Thuy admitted that the events matched the investigation’s conclusions. He confessed that in 2016, Egroup had very little actual business activity, so they sought to “embellish” financial reports to build trust and attract investors to buy shares.
Nhat Tran Company Continuously Changes Charter Capital
Regarding Nhat Tran Trading and Service JSC, the company was established on January 10, 2014, with its headquarters in Ho Chi Minh City, primarily engaged in the business of Postal and Telecommunication Service Agents.
The initial charter capital was 5 billion VND, held by three founding shareholders: Mrs. Le Ngoc Diem (Tay Ninh, holding 40%), Mrs. Tong Thi Kim Lien (resident in Ho Chi Minh City, holding 30%), and Mrs. Truong Kieu Phuong (Ca Mau, holding 30%). Mrs. Diem (born in 1986) was initially the legal representative.
By March 2016, the shareholder structure completely changed, with Mrs. Phuong holding only 15%, while two new shareholders appeared: Le Huy Ba (same address as Mrs. Lien) and Mr. Nguyen Van Chung (Thai Nguyen, holding 70%).
In February 2017, the company increased its charter capital from 10 billion VND to 20 billion VND. More than two years later, in October 2019, Nhat Tran Company unexpectedly increased its capital to 100 billion VND, a 20-fold increase in just three years of operation, with the shareholder structure not disclosed.
From January 2020, the company’s charter capital decreased to 20 billion VND after being increased from 20 billion VND to 100 billion VND in October 2019.
The General Director and legal representative is Mr. Tong Xuan Thanh.
The Shark Thuy Scandal: 1,197 Victims, Over 719.6 Billion VND Stolen
The Ministry of Public Security has concluded its investigation into the case at Egroup Corporation, recommending the prosecution of Shark Thuy (Nguyen Ngoc Thuy), Chairman of Egroup Education Group Joint Stock Company. The investigation also revealed a list of 1,197 victims, with the total amount of embezzled funds exceeding 719.6 billion VND.
Egroup Case: Prosecution Recommended for Shark Thuy and 28 Suspects
The Investigative Police Agency of the Ministry of Public Security has proposed prosecuting Shark Thuy and 28 other defendants on three charges: Fraudulent Appropriation of Property, Bribery, and Receiving Bribes.
“Shark Thuy” Faces Prosecution Alongside 28 Other Suspects
Nguyễn Ngọc Thủy, also known as “Shark Thủy” (born in 1982), has been proposed for prosecution alongside 28 other defendants in a case involving Egroup company.
Proposed Prosecution of Shark Thuy
Nguyễn Ngọc Thủy, widely known as Shark Thủy, Chairman of the Board and CEO of Egroup Corporation, is among 28 individuals facing prosecution by the Ministry of Public Security on three criminal charges.
Shark Thuy Case Concludes: 29 Suspects Indicted
Following the conclusion of the investigation into the case at Egroup Corporation, Nguyễn Ngọc Thủy (Shark Thủy) and 28 accomplices have been indicted by the Ministry of Public Security on three charges: fraud to appropriate property, bribery, and receiving bribes.
