Chinese, Vietnamese suspects nabbed for loan-sharking on mobile apps
Wednesday, September 18, 2019, 16:47 GMT+7
Police in Ho Chi Minh City said on Tuesday had arrested six Chinese and three Vietnamese suspects for running usury services on mobile apps.
Officers in District 2 have transferred the nine suspects along with relevant documents and exhibits to the municipal police department for further investigation.
The police unit in District 2 was able to break up the ring after Nguyen Vuong Bao, one of the ring members, decided to expose their own illegal activities.
Bao, who is among the three Vietnamese nabbed by officers, came into conflict with some Chinese members of the ring and believed he was in danger, so he texted the address of their headquarters to his friend, asking for help.
The friend eventually notified police of the racket and their location on September 14.
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| The three Vietnamese suspects are held at the police station. |
From the tip-off, officers arrived at the ring’s headquarters, a rented house in District 2, and arrested Bao, along with eight other suspects, as their operations showed signs of usury.
According to their statements, the address serves as the headquarters of Kyushu Company and Star City Company, two legally registered companies that both specialize in providing unsecured loans.
The director of the two firms is Nguyen Khac Hanh, a Vietnamese citizen, while their deputy director is Yan Xin, a Chinese man.
Officers have yet to apprehend Hanh and Yan.
The companies began their business in May, offering unsecured loans on mobile apps.
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| Equipment related to the case is confiscated by officers. |
Customers are required to provide their full name, address, phone number, ID number, bank account information, and phone numbers of their relatives to be eligible for loans.
After their files are approved, the money would be wired to the supplied bank account number.
The minimum loan is VND1.2 million (US$51.6), while service charges amount to 24 percent of the loan.
The interest rate is four percent within the first six days and four percent per day after the six-day period ends.
If the debtors fail to pay up on time, the companies would have their employees threaten and terrorize them to take back the money.
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