On the afternoon of November 17th, the Ministry of Public Security announced the conclusion of the investigation into the case involving Egroup Company.
The Investigation Police Agency for Corruption, Economy, and Smuggling (C03) under the Ministry of Public Security was responsible for investigating the fraud, bribery, and embezzlement case at EGroup Education Group Joint Stock Company, Egame Investment and Distribution Joint Stock Company, Nhat Tran Trading and Service Joint Stock Company, and related entities.
Based on Article 232, Clause 4 of the Criminal Procedure Code, on November 13th, the Investigation Police Agency issued Investigation Conclusion No. 56, proposing to prosecute 29 defendants on three charges: fraud to appropriate property, giving bribes, and receiving bribes.
Among the defendants is Nguyen Ngoc Thuy, Chairman of EGroup Education Group.
On the same day, November 13th, the Investigation Police Agency issued Notification No. 22564/TB-CSKT-P6 to relevant units, organizations, and individuals who are victims, parties, and legal representatives, informing them of the conclusion of the criminal investigation.
The Ministry of Public Security’s e-portal published a list of 1,197 victims, with the total amount of embezzled funds reaching 719,678,682,810 VND.
View the full list of victims in the Shark Thuy case HERE.
The “Illusory” Education Ecosystem
Established in 2008, Egroup Education Group Joint Stock Company underwent 19 changes and had a charter capital of 962 billion VND, with Mr. Thuy serving as both Chairman and CEO. Within Thuy’s ecosystem, Apax English and Igarten Education focused on education, operating English centers and kindergartens, generating the primary revenue. Other companies were in the initial investment phase, with no revenue yet.
According to the investigation, over 20 companies were represented by Thuy and his associates, with cross-ownership of shares. Egroup acted as the parent company, responsible for capital mobilization, allocation, and investment.
To raise capital from the public, Thuy utilized four main entities: Egroup, Egame, Apax Education, and Igarten.
To cover debts from unsuccessful investments and business ventures, and to fund his vision of establishing English education chains, kindergartens, healthcare services, and organic food, Thuy initiated a capital mobilization plan.
From 2015 to 2023, Thuy directed Egame to promote Egroup as a reputable, robust education enterprise, claiming expansion in the education sector to attract investors with high-interest promises.
Despite lacking assets and financial capacity, Thuy instructed Apax English and Igarten Education staff to lease premises and establish 130 English centers and Steame kindergartens nationwide, hiring domestic and foreign teachers to attract public interest.
From 2014 to 2016, Thuy increased Egroup’s charter capital from 32 billion VND to 962.5 billion VND in two phases, primarily through inter-company debt transfers and cross-bank transactions.
To legitimize the inflated 577 billion VND capital, Thuy recorded fictitious capital contributions in accounting books, using loan agreements to withdraw cash from bank accounts. He also directed subordinates to collaborate with bank employees to manipulate cash flows.
The group fabricated approximately 70% annual revenue to portray Egroup as a multi-sector, profitable enterprise.
Thuy assigned Egame’s Shareholder Relations Manager to lead a 530-member sales team, developing capital mobilization plans, advertising educational projects, business efficiency, and profit percentage charts for investors.
The sales team was trained to attract investors to Egroup and Egame, promising high, sustainable profits of 15-20% annually.
Legal documents, including share transfer contracts and strategic cooperation agreements, were prepared by the legal department. Shark Thuy, representing Egame, offered shares at 38,000 VND per share, guaranteeing a buyback at 42,000 VND after one year, with investors delegating all shareholder rights to him.
Sales staff earned a 5% commission on investment amounts, with 2% in Egroup shares and 3% in cash, encouraging conversion to shares. High profits motivated employees to misrepresent Egroup’s operations to attract more capital.
Initially, short-term investors received timely principal and interest payments, along with gifts during holidays, to encourage larger, long-term investments.
As repayment pressures mounted and Egroup’s projects failed to generate revenue, the company faced insolvency.
Through these schemes, from 2015 to 2023, Thuy issued over 206 million shares exceeding Egroup’s charter capital to over 10,000 investors, embezzling 7,677 billion VND in principal, according to C03.
Thuy allocated 70% of the funds to repay earlier contracts to avoid detection, using the remaining 30% for personal debts, including bank loans and rent.
Currently, the 7,677 billion VND has been fully utilized, with no remaining funds for repayment.
At 43, Shark Thuy is a renowned entrepreneur known for his role in Shark Tank Vietnam. As the founder of Egroup and Apax Leaders, he is recognized for his innovative education model, focusing on technology, language, and soft skills.
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