The $320 Million Scam: Unveiling Shark Thuy and Accomplices’ Fraudulent Scheme

Scamming Over $320 Million from 10,123 Investors

The Investigation Police Agency of the Ministry of Public Security has concluded the investigation into the case of “Fraudulent Appropriation of Property, Bribery, and Receiving Bribes” at Egroup Education Group, Egame Investment and Distribution JSC, Nhat Tran Trading and Service JSC, and related entities. The investigation revealed an exceptionally large-scale fraud, with over 10,000 investors falling victim to a fictitious share issuance scheme.

Specifically, according to the investigation, from 2015 to 2023, Egroup had only 3.2 million legally issued shares, sold to 60 investors for a total value of VND 87 billion. However, as Chairman and CEO, Nguyen Ngoc Thuy (Shark Thuy) directed subordinates at Egame to illegally issue and transfer 209 million shares, corresponding to 26,354 contracts, 10,123 investors, and a principal debt of VND 7,765 billion.

Of these, 206 million shares were entirely fictitious, corresponding to 26,236 contracts, defrauding 10,063 investors of VND 7,677 billion.

The raised funds were used as follows: 70% to pay interest and principal in a Ponzi-like scheme, and 30% to settle personal debts, operational costs, and expenses unrelated to educational activities.

Fabricating Revenue of Over VND 2,327 Billion

To attract investors, Shark Thuy directed the inflation of capital, fabrication of revenue, legalization of transfer procedures, and off-book accounting to conceal the issuance of fictitious shares.

Executing these directives, defendants Pham Thi Thanh Tho (Chief Accountant), Nguyen Thi Hoai Huong (General Accountant), and Dang Van Hien (Head of Egame’s Shareholder Relations) participated in receiving, accounting, and advertising to lure investors.

Notably, defendant Tong Thi Kim Lien instructed Nhat Tran employees to sign 12 fictitious economic contracts, issue fake VAT invoices, and create VND 2,327 billion in fake revenue for Egroup.

In return, Ms. Lien received nearly VND 32 billion from Shark Thuy and Nguyen Manh Phu. Specifically, from January 1, 2018, to February 2020, she received VND 20.4 billion. After reaching an agreement, Shark Thuy continued to direct subordinates to sign and execute fictitious contracts, then paid Ms. Lien as promised.

The investigation concluded that Shark Thuy was the mastermind, directing all activities related to the issuance of fictitious shares and the creation of fake revenue, causing significant harm to investors.