The Ministry of Public Security has arrested the executives of a multi-level marketing company that allegedly swindled US$11.2 million by persuading 39,000 people to pay for membership to get big promotions.

Nguyen Hoang Vu, 31, general director of Tam Mat Troi Investment Corporation, and five senior employees were arrested October 20 following complaints by the victims.

Investigations found that the Ho Chi Minh City-based company has branches in 30 cities and provinces.

It sold itself as being a member of the Vietnam E-Commerce Association and staffed by trained engineers and leading e-commerce experts.

But it was merely a fraudulent online direct selling company, police said.

The victims were each asked to pay VND6 million ($288) to manage an online electronics booth, and were told they could buy electronic goods at much below market prices.

They were then asked to introduce more members, and were promised VND1.5 million for each new member.

But no one received anything from the company.

The police are investigating further.