“Female Chairman Defrauds Investors of Over 850 Billion VND in Sâm Ngọc Linh Cultivation Project Scam”

Capital Raising Company Formation

On December 14th, the Hanoi People’s Procuracy issued an indictment against Pham My Hanh (born in 1980, residing in Yen Hoa Ward), charging her with “Fraud to Appropriate Property” under Article 174, Clause 4 of the Penal Code. The case will be tried at the Hanoi People’s Court.

Pham My Hanh is accused of defrauding 1,093 investors through 2,346 contracts, with an unsettled total of over 850 billion VND. The Hanoi People’s Procuracy has issued a notice to inform affected victims of the case’s progress. Victims are advised to monitor further updates from the Hanoi People’s Court.

According to the indictment, on August 14, 2017, Pham My Hanh established My Hanh Group Joint Stock Company (My Hanh Company), serving as both the Chairwoman of the Board of Directors and the Director. The company was formed to raise capital from investors through three types of contracts: Share Transfer Agreements, Loan Agreements, and Ginseng Cultivation Contracts.

At the time of fundraising, My Hanh Company had no active Ngoc Linh Ginseng cultivation projects and had not partnered with any enterprises for such projects.

Initiating Fraudulent Activities to Misappropriate Investor Funds

Between August 2020 and March 2023, Hanh disseminated false information and hosted multiple seminars promoting My Hanh Company’s alleged Ngoc Linh Ginseng cultivation projects in Kon Tum and Quang Nam provinces, branding it as a Vietnamese national treasure.

Hanh claimed the ginseng would benefit local communities and be exported internationally, promising high returns to investors. She offered monthly interest rates ranging from 2% to 4%, equivalent to 24% to 48% annually, with monthly payouts until contract maturity.

Investigations revealed that after securing investor funds, Hanh partially used the money to sign agreements with licensed ginseng cultivation companies such as Win-Win Co., Ltd., Sam Sam Co., Ltd., and Tra My Agricultural Products JSC. However, these contracts were never fulfilled.

These agreements were intended to deceive investors into believing My Hanh Company was legitimately operating. The remaining funds were used to pay commissions to intermediaries, settle principal and interest for investors, and finance personal expenses.

From August 2020 to March 2023, Hanh signed 3,623 contracts with 1,213 investors, raising 1,279 billion VND. She repaid 441 billion VND in principal to 814 investors and 164 billion VND in interest to 1,053 investors, along with 34 billion VND in vouchers.

To date, the Procuracy alleges that Pham My Hanh has misappropriated over 850 billion VND from investors.