Managers of e-commerce site arrested for fraud

Four top managers of online marketplace have been arrested for alleged online trading scams and tax evasion.

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  • Hanoi police on August 2 issued arrest warrants for the company’s chairman, Ngo Van Huy, and three vice chairmen-cum-deputy general directors, Nguyen Tuan Minh, Nguyen Manh Ha, and Le Van Cuong.

    They had been investigated for allegedly using computers, telecommunications networks, and the Internet or digital devices to illegally appropriate others’ property.

    A leader of C50 told newswire VnExpress that the General Police Department of Crime Prevention and his unit have directed local police nationwide to quickly clarify the fraudulence of MB24’s operation.

    "It is estimated that after just a year of operation, MB24 has been presented in dozens of provinces and cities, and its members have paid a total amount of some VND700 billion," he said.

    Previously, three managers of MB24 online trading training company, part of the online marketplace, were arrested on similar charges.

    The arrest warrant for the three top managers of MB24’s branch in northern Phu Tho Province’s Viet Tri City was also issued on August 2.

    The three people are the branch director, 27-year-old Truong Dinh Tuan, and the two vice directors, 36-year-old Dang Trung Dung and 47-year-old Nguyen Ngoc Lan.

    MB24 runs an online business via in accordance with a license issued by the Ministry of Information and Communications in June. On this website, MB24 opened many pavilions for selling numerous products in the form of a multi-level business. 

    However, the site has never conducted any goods purchases, instead of focusing on expanding its customer networks.

    The primary purpose of most people involved in the site is getting commissions by referring other people to buy the virtual pavilions. Authorities have identified the business on this website as not eligible for e-commerce business, while showing signs of tax evasion.

    Colonel Nguyen Van Vien, PX15 chief of Phu Tho Police Department, said as of July 27, the provincial branch had nearly 15,000 virtual booths worth VND77 billion. In particular, there were 5,800 virtual shops with about VND29 billion in Viet Tri City.

    Tuoitrenews/VOV online