E-Commerce fraudsters go on trial

The four managers of a fraudulent online shopping site on trial in Dak Lak Province on Monday.- Photo cand.com.vn

The four defendants are Ngo Van Chien, 37, and Tran Van Su, 42, former director of the company’s branch in Dak Lak; Dang Anh Tuan, 37 and Bui Thi Chien, 40, former director of the company’s branch in Buon Ma Thuot.

The four people were arrested since August 2012 on charges of using computers and internet systems to illegally appropriate more than VND10 billion (US$440,200) from other people.

The case may last many years, as it involves more than 700 victims. About 150 persons concerned have been summoned by the court as witnesses.

According to the indictment, the company’s branches in Dak Lak and Buon Ma Thuot were set up in October and November 2011, respectively. It got licence from Dak Lak Province’s Planning and Investment Department and operated under the direction of MB24 in Ha Noi, which was led by Ngo Van Huy (Chien’s brother).

The defendants promoted the company, opening fake online “booths,” which purported to allow members to buy and sell goods online. To become a company’s member, each person had to contribute VND5.2 million to the company.

Members paid real money to the company and got virtual currency in return.

From October 2011 to July 2012, the two branches have developed 2,054 booths with a total turnover of VND10 billion. This money was transferred to the company’s head office in Ha Noi. The four defendants received commission of over VND3.2 billion from the company.

Specifically, Chien and Su received over VND1 billion each; Tuan got VND900 million and Chien got nearly VND29 million.

Earlier in 2014, the Ha Noi court sentenced Ngo Van Huy, the then general-director of the online shopping and training company MB24 to 16 years, while his deputy Le Van Cuong and Nguyen Manh Ha, the technical chief and administrator of the website, got 14 years and 12 years, respectively.

In addition to their jail sentences, the men were ordered to pay back the remaining proceeds of the ill-earned money to their 107 victims.

Most victims of the MB24 scheme lived in remote rural areas and lacked an understanding of technology and e-commerce. The court found they were lured by VND1.5 million commissions that the company promised to pay them for signing up as new members.

MB24 managed to enlist recruiters and dupe victims all over the country, before its headquarters in the capital was raided on August 1, 2012.

The first instance court is expected to last until June 16.