Nguyen Ngoc Thuy, owner of the English language school Apax Leaders, is facing allegations of defrauding 10,123 investors out of VND7.68 trillion (US$291 million) by selling fraudulent shares in his company, Egroup.
The Ministry of Public Security has finalised its probe into the activities of Egroup’s chairman, Mr. Thuy. It has recommended charges of bribery and wrongful misappropriation of assets against him and 29 of his associates.
Authorities claim that Thuy and his accomplices misrepresented the financial status of Egroup. They allegedly claimed the company had a charter capital of VND963 billion ($36 million) to appeal to potential investors.
The reputation of the Apax English school, which Mr. Thuy owned, was also utilised to lure victims. At one point, the school boasted 120 centres scattered across the country, adding to its credibility. Some investors even traded real estate for the supposed shares.
The 10,123 individuals who invested in Egroup were promised that the company would repurchase the shares after one year at a higher price.
However, the police have discovered that 8,926 of these investors never received any return on their investment, essentially losing their money.
Who is Nguyen Ngoc Thuy?
Nguyen Ngoc Thuy is the owner of the English language school, Apax Leaders. He is also the chairman of Egroup, a company involved in this alleged fraudulent case.
What activities of Egroup is Nguyen Ngoc Thuy being investigated for?
Thuy is being investigated for allegedly selling fraudulent shares of Egroup to over 10,000 investors, defrauding them of a total of VND7.68 trillion ($291 million).
What was the false promise made to the investors?
Investors were assured by Thuy and his associates that the company would repurchase the shares sold to them after one year at a higher price. However, the majority of these investors never received any return on their investments.
