Top officials of SME securities arrested on fraud suspicions

TN News

Email Print

Investigators from Ministry of Public Security have arrested two leaders of a securities company on suspicion of cheating another company out of VND57 billion (US$2.69 million), Tuoi Tre reported Friday.

Phan Huy Chi, chairman and director general of SME Securities Corp, and his subordinate, vice  chairman Pham Minh Tuan, are accused of defrauding the PetroVietnam Insurance Joint Stock Corporation (PVI).

They allegedly faked documents when signing a stock investment contract with PVI in April, 2010, according to the newspaper.

The contract was worth VND168 billion ($7.95 million), of which PVI contributed 40 percent or VND49 billion ($2.32 million), while the rest was supposed to be paid by Hoang Ngoc Anh, a businessman in Hanoi.

However, it was later found that Anh had never signed the contract and his signature was actually faked, Tuoi Tre said.

PVI also signed another stock investment contract with SME and Anh Consultancy Joint Stock Company, which was actually a member of SME.

Under the second contract, SME was supposed to provide its customers   Anh company and PVI - with stock information and manage co-invested stocks, but it allegedly gave incorrect information to cheat PVI, according to the news report.

It said for the two contracts, PVI paid SME a total of nearly VND108 billion ($5.1 million).

In April last year when the contracts were ended, SME returned part of the money and still owes VND57 billion to PVI, and is, in fact, accused of having pocketed the money, the newspaper reported.

Police are investigating the case further.

Like us on Facebook and scroll down to share your comment

More Society News