Vietnamese tycoon ‘Shark Thuy’ accused of $295 million investor fraud

Vietnam’s police said on Tuesday that they had issued a supplementary investigation conclusion recommending the prosecution of Thuy and 28 other defendants.

The case involves Egroup Education Group JSC, Egame Investment and Distribution JSC, Nhat Tran Trading and Services JSC, and related entities.

Thuy, 43, became widely known after appearing on the Vietnamese version of Shark Tank. Besides Egroup, he is also the founder of the Apax Leaders education system, focusing on foreign-language learning and soft skills.

Investigators have recommended prosecuting Thuy for fraudulently appropriating property and giving bribes.

According to investigators, Thuy and his accomplices inflated Egroup’s registered capital and revenue figures to portray the company as a large and profitable education business, using that image to attract investors.

Potential investors were introduced to Egroup and Egame and offered investment opportunities with promises of high returns.

False information was then used to raise money from more than 10,000 people, resulting in the alleged appropriation of over VND7.677 trillion ($295 million).

Investigators allege that Thuy worked with Tong Thi Kim Lien, chairwoman and chief financial officer of Nhat Tran, to inflate Egroup’s reported revenue.

Thuy is accused of paying nearly VND32 billion ($1.23 million) to Lien in connection with the arrangement.

Lien is accused of receiving bribes, while 26 other defendants, including accountants and business managers at Egame, face charges of fraudulently appropriating property.