Blocking businesses raising capital to pay 50% interest: Debt to more than 7,500 people, principal of more than 3,700 billion VND

On the afternoon of November 8, the Economic Police Department, Da Nang City Police announced information related to the incident at GFDI Investment Consulting Company Limited (GFDI Company).

According to the police, through the investigation, they discovered signs of "fraudulent appropriation of property" at GFDI Company, so they organized and deployed professional measures to urgently verify the case.

Initial results determined that GFDI Investment Consulting Company Limited was established in 2018, with a charter capital of 80 billion VND (headquartered at 92, 29/3 Street, Hoa Xuan Ward, Cam Le District, Da Nang ), with Mr. Nguyen Quang Hoang as director, legal representative, and chairman of the board of members, owner of the company.

Mr. Nguyen Quang Hoang (second from right). Photo: Chau Anh

Since its establishment, Nguyen Quang Hoang has built the company's business model in the direction of borrowing money from people by signing asset loan contracts.

Since November 2023, the business investment has been losing money and losing financial capacity, so in order to maintain the company's operations, Nguyen Quang Hoang has organized and directed employees to defraud and appropriate customers' assets in the form of signing loan contracts, using the loan money of the latter to pay the former.

By early November 2024, the company was unable to pay 7,541 customers, with a total outstanding principal of more than VND 3,700 billion.

Police were mobilized to bring the documents collected from the company to a specialized vehicle.

On November 8, the police conducted an emergency search at the headquarters, the GFDI Company's transaction office and the private homes of Nguyen Quang Hoang and related subjects.

According to the police, during the search, many documents, electronic data and assets related to the illegal acts of the subjects were seized to serve the investigation.

“In the coming time, the Economic Police Department will continue to investigate, clarify, and strictly handle the illegal acts of Nguyen Quang Hoang and related organizations and individuals, and actively verify and recover assets to resolve the consequences and ensure the legitimate rights of people involved in the case,” the Economic Police Department informed.

Crowds of people gathered at the company headquarters.

According to VietNamNet reporters, late in the afternoon of the same day, after many hours of searching the GFDI Company headquarters, many police officers transferred the documents collected from the company to a specialized vehicle.

Meanwhile, hundreds of people are still sitting outside the company headquarters to monitor the incident, hoping to have a dialogue with Mr. Nguyen Quang Hoang to clarify the amount of money invested.

Since 2018, GFDI Company has mobilized capital with high interest rates, by signing asset loan contracts. The company's mobilization interest rate is from 30-50%/year.

Before the incident, GFDI Company introduced that it had many offices and branches in provinces and cities across the country such as: Da Nang, Hanoi , Quang Tri, Khanh Hoa, Binh Dinh, Can Tho, Ba Ria - Vung Tau... with nearly ten thousand customers and hundreds of employees.

Police blockaded the headquarters of a company raising capital with an interest rate of 50%/year in Da Nang.

Da Nang police are present at the headquarters of GFDI Investment Consulting Company in Da Nang. Outside, people are also gathering to wait for the company's leaders to talk.

Investors surround headquarters in Da Nang, suspecting that company paying interest of nearly 50%/year is 'bankrupt'

On the morning of November 6, hundreds of people were present at the headquarters of GFDI Investment Consulting Company located on March 29th Street (Hoa Xuan Ward, Cam Le District, Da Nang) after hearing the news that the company had temporarily suspended transactions across the entire system.

Source: https://vietnamnet.vn/phong-toa-dn-huy-dong-von-tra-lai-50-no-hon-7-500-nguoi-goc-hon-3-700-ty-dong-2340195.html