Police have arrested leaders of Tam Mat Troi, a Vietnamese multi-level marketing company, for fraud.
Police searching the office of the company’s general director
Those arrested included the company’s general director, Nguyen Hoang Vu, 31, who comes from the central province of Binh Thuan but lives in HCM City’s Phu Nhuan District. Five other company officials were also taken into custody for questioning.
According to the Ministry of Public Security’s investigation agency, the company asked people to pay a membership fee of VND6 million (USD287.5) and then offered a commission of VND1.5 million (USD71.87) for each person they introduced into the network.
Nearly 40,000 people in 30 cities and provinces across the country had joined the network.
A police search of the offices and private homes of company officials produced evidence of wide-scale and deliberately planned fraud.
Tam Mat Troi Investment Corporation is headquartered on Song Da Road in Tan Binh District’s Ward 2 and has a representative office in District 1. It had set up a series of branches in over 30 localities nationwide.
The firm has hired leading e-commerce experts to implement their business strategies, the police agency said.
Since the police closure of Mua Ban 24’s multi-level marketing pyramid scheme, the police agency received several letters denouncing Tam Mat Troi.
Initial investigations showed that Tam Mat Troi used the same multi-level marketing model as now closed Mua Ban 24 and Sinh Loi.
The site encouraged people to join its network to sell electronic products in exchange for preferential prices plus a commission of VND1.5 million for introducing new members.
In order to offset their VND6 million membership fees and earn more money, the company’s dealers tried to lure more people into joining, but it became increasingly hard to attract new members. Many people failed to get anyone to buy their products, leaving them out of pocket.
