CEO of Vietnamese firm behind $100bn high-speed rail proposal arrested for fraudulent claims

Vo Xuan Truong, chairman and CEO of Mekolor Joint Stock Company, was taken into custody on Thursday by the Security Investigation Agency of Can Tho City. 

Truong faces criminal charges for "abusing democratic freedoms to infringe upon the interests of the state and the legitimate rights and interests of organizations and individuals."

Polices forces simultaneously executed search warrants at Truong’s residence in Ho Chi Minh City and Mekolor’s headquarters in Can Tho, seizing documents and physical evidence related to the case.

A fictitious €10 billion wire transfer

According to investigators, the conflict began in 2021 when Mekolor opened an account at the Can Tho branch of VietinBank, one of Vietnam's largest state-owned lenders. 

Shortly after, Truong presented documents claiming an incoming €10 billion transfer from a German firm, Immobilien Partner GmbH, via Deutsche Bank. He requested that VietinBank clear and deposit the funds into Mekolor’s account.

However, an internal audit and bank trace revealed no record of any incoming transfer matching the codes provided by Mekolor. VietinBank formally warned Truong that the documents appeared to be fabricated and alerted him to a potential scam.

Instead of addressing the discrepancies, Truong doubled down. He filed a lawsuit with the International Chamber of Commerce (ICC), publicly accusing VietinBank and the State Bank of Vietnam of conspiring to seize the non-existent €10 billion.

Truong and his associates then launched a campaign on international websites and social media platforms, reiterating the allegations. Law enforcement noted that these actions severely damaged the reputation of Vietnam's banking system and government agencies.

Continued defiance leads to criminal charges

Despite receiving an administrative fine from the Can Tho Department of Information and Communications for spreading misleading and defamatory information, Truong refused to stop. 

Using a personal Facebook account under the alias 'Philip Vo,' he continued to publish posts accusing officials and institutions of wrongdoing.

Investigators are continuing to gather evidence as the probe expands.

Truong’s firm, Mekolor, previously grabbed national headlines in Vietnam after putting forward an audacious, unsolicited $100 billion proposal to build the country's North-South high-speed railway, a plan widely met with skepticism by industry experts given the company's lack of capital and track record.