Confessions of alleged bosses in the vacation-contract fraud totaling over 612 billion dong in Ho Chi Minh City

Ho Chi Minh City Police have continued to expand investigations into fraud rings operating under the guise of travel companies, alleging that the schemes use “vacation contracts” to siphon customers’ money.

In the case of “hiding as a travel business to commit asset misappropriation,” the police said that on June 19 they widened the probe by clarifying the roles of individuals involved in the rings and how they allegedly traded “vacation contracts” to misappropriate assets.

Scope of the investigation

Authorities have filed 11 criminal cases and arrested nearly 200 defendants, including leaders and employees of the related companies, for “Fraud and misappropriation of assets.” Police said the group includes executives, CEOs, and employees from multiple firms.

Alleged operating model

Police said they clarified testimonies from those involved and that the “bosses” admitted wrongdoing, describing how the fraud was organized and carried out.

According to testimony, the packages offering to transfer vacation contracts from other firms were allegedly used only to reach customers. Police said the real objective was to persuade customers to buy membership cards and continue paying for resort services provided by the company.

One “boss” testified that since the company’s founding and operation, he and key members held leading roles and devised the alleged fraud to appropriate customers’ money.

Police said sales staff were often offered incentives and promised that after two years the company would buy back the contracts at a profit of 20% to 30%. However, police alleged the company did not have a repurchase policy as promised.

Telemarketing and event-based recruitment

Another “boss,” Vu Duy Tung, said the company allegedly established a Telemarketing department to call customers and invite them to events held on the 8th floor of a building on Dien Bien Phu Street. Police said customers were introduced to promotional offers, gifts, and “vacation contracts” intended to persuade them to sign contracts and pay.

After customers attended the events, police said consultants and sales staff allegedly approached them directly to present service packages. Police determined the operation relied on psychological tactics, including a series of commitments and attractive incentives to encourage customers to sign vacation-card contracts.

Police said staff allegedly continued advising customers and steering them from one contract to another, while promising that the company would buy back contracts at high prices or guarantee attractive profits to push customers to pay.

Use of customer funds

Police said the “boss” also testified that the money received from customers was used only in small part to fund services for customers with real demand. Tung said “most of the remaining funds were embezzled and used for other purposes.”