The Hanoi People’s Court opened proceedings on October 26 in a major investment fraud trial involving 188 defendants accused of using 36 fraudulent online trading platforms to misappropriate nearly 1.56 trillion Vietnamese dong, or roughly Rs 500 crore, from more than 900 investors. The trial, expected to run for about 15 days across court venues in Hanoi and Ho Chi Minh City, centers on alleged mastermind Pho Duc Nam, widely known as “Mr Pips.” A total of 187 defendants were present as hearings commenced, while one heavily pregnant defendant requested to be tried in absentia. Alongside Nam, key figures face charges ranging from property appropriation and money laundering to tax evasion, including NextTech Group chairman Nguyen Hoa Binh, publicly known as “Shark Binh,” who is among six individuals indicted for alleged money laundering.
Alleged Network Used Dozens of Fake Trading Websites
Prosecutors allege that Nam and his associates established 36 counterfeit websites designed to mirror genuine international foreign exchange and securities brokerages. Rather than executing actual trades in global financial markets, the platforms functioned as closed systems where operators profited directly when investors suffered losses. To recruit participants and handle deposits, the operation reportedly established offices in multiple major cities, deployed shell companies, and utilized 66 separate bank and payment accounts. The indictment directly connects Nam to 919 individual fraud cases, alleging that sophisticated digital interfaces were used to mislead depositors into believing their capital was being actively and securely traded.
Proceeds Converted Into Real Estate and Gold Holdings
Financial investigators traced hundreds of billions of dong from the scheme directly into luxury real estate, foreign currencies, and precious metals. Nam allegedly redirected more than 560 billion Vietnamese dong of illicit proceeds into the purchase of 32 separate properties, alongside gold and foreign currency reserves. Co-accused Le Khac Ngo, known as “Mr Hunter,” is linked to 287 fraud cases totaling nearly 340 billion dong, of which approximately 200 billion dong was allegedly spent on four real estate properties and 143 gold bars. Authorities also charged Nam’s cousin, Pho Duc Tuan, with harbouring property acquired through criminal activity, as the court works to verify asset trails and assess restitution for victims.
Payment Providers and NextTech Chairman Face Scrutiny
The court is examining the handling of financial flows through payment services, placing scrutiny on Shark Binh and several others accused of facilitating financial transactions tied to the network. According to prosecutors, three defendants continued to supply payment gateways to the bogus platforms while falsifying transaction logs, potentially hindering police inquiries. Records presented by the prosecution state that 232 victims transferred nearly 319 billion Vietnamese dong into designated payment wallets between June 2020 and September 2022. The 177 remaining defendants face charges of fraudulent appropriation of property, with the court scheduled to assess each defendant’s level of knowledge, involvement, and legal culpability as hearings progress.
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