Brian Jeffrey
Pham Duc Nam, a TikTok influencer known as “Mr. Pips,” has been charged with fraud as authorities freeze over 5,000 billion VND (approximately $200 million) in assets. His situation draws attention to a disturbing trend of fraudulent investment schemes in sectors like securities and gold.
Legal action has commenced against Nam, aged 30, alongside Le Khac Ngo, age 34, and 24 others, for crimes including “fraudulent appropriation of property” and “money laundering.”
Nam gained fame on social media for sharing investment tips in international markets and forex trading, cultivating a following with claims of immense profits and a luxurious lifestyle filled with opulent items.
Investigations indicate he and Ngo devised a fraudulent operation pretending to be a legitimate stock brokerage. They used telemarketing tactics to offer misleading financial advice and brokerage services for major stocks.
Victims were drawn into private chat groups under the promise of trading on these platforms, coerced into borrowing money for risky trades, ultimately leading to significant financial losses. The culprits then seized whatever remained of the victims’ funds.
Authorities have seized assets associated with the suspects, totaling over 5,000 billion VND.
Prior to his indictment, Nam had amassed a considerable online following, with videos reaching thousands, even millions, of views. He used livestreams to analyze trends in gold and cryptocurrency while promoting high-risk investments as quick paths to wealth.
Nam frequently urged his followers to invest substantial amounts, claiming it was crucial for meaningful returns, and he even touted a flawless record in trading over the past decade, enticing constituents into exclusive Telegram groups where he pushed a “copy trading” strategy.
Scams targeting affluent individuals have escalated, especially in gold and foreign securities. Many have reported daily solicitations from scammers who impersonate reputable brokers, prompting them to engage in deceptive investment groups. Numerous victims have faced substantial losses after their funds were deposited into these misleading platforms, only to encounter withdrawal issues.
Online platforms are saturated with ads promoting unrealistic returns from investments in gold, cryptocurrency, and various securities. Scammers often utilize copy trading appeals, exploiting those with limited financial knowledge to deposit funds into accounts controlled by them.
In more sophisticated scams, counterfeit identities have been created with the help of AI. Fraudsters pose as well-known financial figures to gain victims’ trust.
In August, SSI Securities issued warnings about scams involving fraudulent representations of a well-known chairman, who was impersonated during deceptive livestreams providing fake investment analyses. Victims were misled into joining private Telegram groups, exposed to convincing AI-generated videos of the chairman to solicit their investments.
This problem extends beyond SSI, with multiple firms including VNDirect and MBS issuing alerts over similar scams. Notable companies such as Vingroup and Hoa Phat Group have also cautioned the public after experiencing impersonation issues.
Some fraud schemes involved forgery of documents and official seals, the creation of imitation websites, and even the production of fictitious media content to entice victims into believing in lucrative returns.
A brokerage director remarked on the lack of regulation surrounding cryptocurrencies and forex trading in Vietnam, clarifying that no forex platforms have been sanctioned by the State Bank of Vietnam, labeling all associated activities illegal. Investors are strongly advised to remain vigilant and steer clear of dubious, unregulated schemes.
On December 9, during a session at a Hanoi People’s Council meeting, a representative from the Hanoi People’s Procuracy confirmed the ongoing investigation into the online fraud network associated with Nam and Ngo.
The Hanoi Police Department has expanded its inquiry after charges were approved regarding various fraud-related offenses. Following this, additional individuals have been implicated as the investigation evolves.
“Using a stock brokerage framework, these individuals ensnared victims, rendering them unable to access their funds. The total amount defrauded is estimated to reach several thousand billion VND. Ongoing investigations aim to unveil more victims and finalize findings,” an official stated.
In late October 2024, after extensive investigative efforts, Hanoi police made significant strides in dismantling a widespread online fraud operation active across several regions.
Findings reveal that Nam and Ngo initiated their fraudulent enterprise in June 2019, mimicking methods employed by international stock brokerage firms. They fabricated a legitimate front, developing websites that misled victims into believing they were receiving real financial advice related to investment opportunities in prominent international companies.
The duo launched a website, recruiting personnel and projecting the image of a reputable investment consultancy that dealt predominantly in international securities. Their outreach spanned several Vietnamese cities and even into Cambodia.
The fraudsters deployed their team to target potential investors, ushering them into private chat groups where trust was built through small transactions. Victims were encouraged to invest larger sums and take on leveraged loans, leading to severe financial losses and what’s referred to as “account burning,” facilitating theft of remaining assets.
Even after their complete financial ruin, scammers continued to exploit their victims, persuading them to invest in new platforms with false promises of recovering lost funds.
Nam and Ngo structured an organized network with various roles, including IT and client support, training their staff rigorously to effectively carry out fraudulent operations.
Recent searches at suspect locations yielded assets valued over 5,000 billion VND, including:
127 billion VND in cash.
Savings worth around 306 billion VND.
216 kilograms of gold.
128 pieces of real estate.
30 assorted vehicles.
9 billion VND in bonds.
Numerous other valuable items.
As the investigation into the extensive fraud ring led by Pham Duc Nam progresses, the Hanoi Police have indicted more individuals and have called on Le Khac Ngo to turn himself in and return misappropriated assets for leniency in sentencing.
On December 10, Hanoi Police announced the indictment of 31 individuals connected to the scheme, with 26 facing charges for “fraudulent appropriation of property,” three for “money laundering,” and others for related offenses.
Le Khac Ngo has been urged to surrender and return his fraudulent gains to qualify for reduced penalties.
