Tycoon Seeks to Acquire Phuc Son Corporation to Compensate Hau “Pháo” with 7 Trillion VND

On January 7th, at noon in Hanoi, the Military Court of Military Zone 5 continued questioning parties with related interests and obligations, as well as victims regarding civil matters, in a case that occurred at Nha Trang Airport (Khanh Hoa Province).

In this case, Nguyen Van Hau (aka Hau “Pháo,” former Chairman of Phuc Son Group – Phuc Son Corporation); Tran Huu Dinh (former Director of Nam A Investment Joint Stock Company); and Nguyen Thi Hang (former Deputy General Director of Phuc Son Group) were all charged and brought to trial for “Fraud to Appropriate Property.”

According to the indictment, defendant Nguyen Van Hau, in his capacity as Chairman of Phuc Son Group, was fully aware that the military land at Nha Trang Airport had not yet been arranged by the Prime Minister, nor had it received a land recovery decision or land allocation decision. The Nha Trang Urban Center – Commercial – Service – Financial – Tourism Zone project had not been approved with a detailed 1/500 scale plan, nor had it been recognized by the People’s Committee of Khanh Hoa Province. The land had not been handed over on-site, and no construction permit for technical infrastructure had been issued for the urban area.

At that time, Phuc Son Group was not authorized to mobilize capital, and the project’s products were not permitted to be transferred as land plots for individual construction. However, defendant Hau still directed company employees to organize media campaigns, presenting the project to customers as legally compliant. They proceeded with sales distribution activities, signing 983 land use transfer contracts with 683 individuals, collecting a total of over 7,032 billion VND.

To mitigate the situation, during the investigation, Nguyen Van Hau sold 501 taels of gold for 60 billion VND, which was deposited into the enforcement agency’s account. 1,422 land titles registered under various organizations and individuals, along with a Mercedes S600 car registered under Phuc Son Group, are also being held as collateral for enforcement.

During the trial, the former Chairman of Phuc Son Group admitted to the violations and is now focused on measures to rectify the consequences. Additionally, defendant Hau requested the court to facilitate a partner who has decided to acquire the company’s shares.

At today’s court session, the Trial Panel announced that they had summoned Mr. N.D.K., a prominent businessman, as a party with related interests and obligations. Mr. K.’s representative answered the court’s questions regarding this transaction.

The representative stated that Mr. K., defendant Hau, and other shareholders of Phuc Son Group had reached an agreement for Phuc Son to transfer its shares to Mr. K. Mr. K. has committed to fulfilling civil obligations and compensating all victims who purchased land in the Nha Trang project, in accordance with the effective court decision. The company has submitted this commitment to the court for consideration.

The representative also mentioned that Mr. K. has been working with the Military Commercial Joint Stock Bank (MB Bank) to issue a guarantee letter to the court.

Regarding the legal aspects of the transfer contract, the representative explained that during the negotiation and contract drafting process, they had studied the legal provisions and sought opinions from prosecution agencies. The transfer of shares was deemed permissible. Furthermore, Mr. K. and related parties have completed the necessary procedures, ensuring the contract’s legal compliance.

Also presenting at the court, a representative from MB Bank stated that they had issued a guarantee letter for Mr. K. in accordance with the Law on Credit Institutions and related circulars and decrees. The guarantee letter has a maximum value of 6,973 billion VND. The issuance process adhered to the law and MB Bank’s procedures.

Subsequently, the Trial Panel requested MB Bank and all parties involved in the contract to promptly provide additional documents for the court to assess whether to accept the agreement between Mr. K. and Phuc Son Group.