Today (September 25), former CEO of Saigon Jewelry Company (SJC), Le Thuy Hang (born in 1970, from Hai Phong City), stood trial alongside 15 accomplices in a case involving fraud at SJC. The Supreme People’s Procuracy identified Hang as the mastermind behind the scheme.
Embezzlement of Over 73 Billion VND
According to the indictment, Le Thuy Hang and her associates were charged with two main offenses: embezzlement and abuse of power. First, regarding embezzlement, since 2021, Hang instructed subordinates to falsify documents and inflate the standard loss rate during gold bar processing from 0.00007 taels per bar to 0.0005 taels per bar. This manipulation allowed SJC’s leadership to embezzle 91 taels of surplus gold from processing and 4.8521 taels recovered from workshop sweeps, totaling 95.8521 taels.
Second, concerning abuse of power, from 2021 to September 2024, SJC was tasked by the State Bank of Vietnam (SBV) with reprocessing damaged SJC gold bars for recirculation. Instead of processing only the damaged gold bars assigned by the SBV, Hang directed subordinates to introduce externally sourced raw gold into the production line. This gold was then legitimized by assigning serial numbers and stamping it with the SJC mark, as if it were under SBV control. Exploiting this authority, Hang orchestrated the production of 6,255 additional SJC gold bars in 56 unauthorized batches, selling them for illicit profit and causing a loss of over 74.8 billion VND to the state budget. After selling the gold, Hang personally profited more than 64.1 billion VND.
Le Thuy Hang before her arrest. Photo: PROVIDED BY POLICE
The Supreme People’s Procuracy concluded that whether through embezzlement or abuse of power, former SJC CEO Le Thuy Hang consistently aimed to profit personally, misappropriating and exploiting assets under her management. According to the indictment, the total damage and embezzled assets in the case amount to 107.46 billion VND, with Hang pocketing approximately 73.5 billion VND.
These actions not only harmed SJC and the SBV but also undermined the national gold brand and price regulation policies. The unauthorized conversion of raw gold into SJC gold bars directly damaged the reputation of the national gold brand. SJC gold is not merely a commercial product but also a market regulation tool exclusively managed by the SBV. When unauthorized gold is mixed in, market confidence is eroded, distorting state gold price stabilization policies and posing risks to national financial and monetary security.
Multiple Offenses
In addition to Le Thuy Hang, four other defendants were charged with both “Embezzlement” and “Abuse of Power”: Tran Tan Phat, Mai Quoc Uy Vien (former Director of the Gold Workshop at Tan Thuan Jewelry Enterprise), Doan Le Thanh (former Head of the Gold Melting Team at Tan Thuan Gold Workshop), and Hoang Le Hue (former Director of SJC’s Central Region Branch). Hang was identified as the mastermind, while the others played active supporting roles.
According to the indictment, their actions violated Article 353, Clause 4(a), and Article 356, Clause 3, of the Penal Code. These offenses carry severe penalties, with “Embezzlement” punishable by 20 years to life imprisonment or the death penalty, and “Abuse of Power” carrying 5 to 15 years in prison.
Beyond asset seizures to recover losses, investigators uncovered additional irregularities at SJC and among related individuals and businesses, primarily addressed through administrative measures and referrals to competent authorities for further review.
Specifically, the investigation revealed that beyond the indicted defendants, several SJC employees and associated individuals participated in varying degrees in the fraudulent activities. However, their roles were deemed insufficient for criminal prosecution or involved other violations. Therefore, the Ministry of Public Security’s Investigation Police Agency did not pursue criminal charges but recommended that competent authorities review and address these issues administratively.
Notably, based on information from the SBV Inspection Team, the investigation identified irregularities in SJC’s gold transaction accounting and uncovered violations in record-keeping and tax declarations by businesses and individuals trading gold with SJC. As SJC had fulfilled its tax obligations, investigators deemed criminal charges unwarranted. Instead, the Investigation Police Agency recommended administrative penalties for internal violators and referred relevant information to tax authorities for further action, in accordance with the law.
Seizure of 8 Properties and Hundreds of Taels of Gold
Prosecutors have taken extensive measures to seize, impound, and freeze assets. Specifically, eight properties have been impounded, including six land plots registered under Le Thuy Hang’s name and two apartments belonging to Tran Tan Phat.
Additionally, authorities confiscated 429.55 taels of gold and 1,095.88 grams of gold. To mitigate damages, the defendants and related parties voluntarily surrendered over 28.4 billion VND.
Supreme People’s Procuracy Indicts Five Defendants from Chị Em Rọt Group for Illegally Profiting 12.4 Billion VND, Including Miss Grand Thùy Tiên, Quang Linh Vlogs, and Hằng Du Mục
Prosecutors have charged five individuals with the same offense: defrauding customers.
Why Do Gold Ring Prices Decline More Slowly Than Gold Bullion?
Over the past few days, while the price of gold bars has seen a sharp decline, the price of gold rings has dropped at a much slower pace, with moments of complete stagnation.
How Did the Former CEO of SJC Bypass the State Bank’s Supervision to Introduce External Gold Materials for Production?
“A scandal has rocked the gold industry as allegations surface of a sophisticated scheme involving the illegal production and distribution of gold bars and rings. At the center of the controversy is Le Thuy Hang, who is accused of orchestrating a plan to source raw gold from unknown outside sources and smuggle it into her workshop. Taking advantage of lax supervision, Hang and her accomplices are believed to have illicitly manufactured and distributed the gold items, raising serious concerns among authorities and highlighting the need for tighter controls in the industry.”
A Web of Embezzlement: The $3 Million Scandal Involving the Former CEO of SJC.
The Supreme People’s Procuracy of Vietnam has revealed that Le Thuy Hang, the former CEO of Saigon Jewelry Company Limited (SJCL), illegally profited to the tune of over VND 73 billion ($3.1 million). Hang is accused of issuing directives that contravened the law, resulting in significant personal gain.
“Former SJC Gold Company CEO Accused of Illicitly Producing Thousands of Taels of Gold Using External Raw Materials, Hoarding Stabilization Gold to Sell at Higher Prices”
The indictment by the Supreme People’s Procuracy revealed that Mrs. Hang and her accomplices caused a loss of over VND 107 billion to SJC Company. This includes a loss of VND 11.6 billion due to embezzlement and VND 95.8 billion due to violations. Mrs. Hang is accused of personally benefiting to the tune of VND 73.5 billion from these illicit activities.
