Testimony from two directors reveals fraudulent 'holiday contract' scheme in Ho Chi Minh City.

Video clip of statements from the ringleaders of the fraudulent company. (Source: Police)

Regarding the case in which the Ho Chi Minh City Police have initiated legal proceedings in 11 cases involving nearly 200 defendants, seized over 5.500 contracts, and determined that the amount of money embezzled through holiday contracts reached over 612 billion VND, the investigating agency is currently taking statements from the suspects to clarify the case.

"There is no buyback policy."

At the investigative agency, Le Tran Nhat Tho, Chairman of League Of Resort Services Joint Stock Company (LORS), admitted that from the very beginning of implementing the business model of transferring vacation contracts from other companies, the company did not have a policy of seeking partners to carry out the transfers as committed to customers.

According to the testimony, the company's real purpose was to persuade customers to upgrade their contracts, convert into members, and continue purchasing new products from the business.

To gain customer trust, sales staff were tasked with promising that the company would repurchase the contracts after two years with a profit margin of 20% to 30%. However, in reality, the company had no buyback policy whatsoever, contrary to what they had advertised.

"The company does not have a policy of repurchasing such packages; instead, it tries to steer customers toward greater offers to encourage them to purchase new products." Thọ confessed.

According to investigators, this was a crucial link in the scam. Instead of fulfilling its commitment to liquidate or transfer the contract, the company continuously offered new promotional programs to entice customers to continue investing.

When asked about the source of funds for the company's operations, Tho stated that the majority came from customers continuing to sign new contracts.

Leading victims to sign dozens of contracts.

Meanwhile, Vu Duy Tung, director of Meli Club - one of the businesses involved in the dismantled network - also admitted that the company operated in a closed-loop system.

According to Tung's testimony, the company established a telemarketing department that specialized in calling customers to invite them to attend events at the office. Afterward, the sales team would directly advise and introduce vacation packages and persuade customers to sign contracts.

Not stopping at a single transaction, customers were repeatedly invited back to the company to purchase additional contracts with the promise of being able to resell or transfer them at a higher price in the future.

"When a customer complaint arises, you can invite the customer to come in for a meeting or continue to encourage them to purchase additional contracts." Tung confessed.

According to initial investigations, this is a common tactic used by companies. When customers request contract termination or a refund, the businesses do not resolve the issue but instead offer upgrades, conversions, or additional fees to prolong the process and retain customers.

Notably, Tung also admitted that only a small portion of the money collected from customers is used to book travel services for those with actual needs. The majority of the remaining cash flow is used by the business for other purposes.

"The money collected is then misappropriated and used for other purposes to generate profit." Tung made the statement to the investigating agency.

These testimonies are considered crucial evidence to help investigators clarify the nature of the operations of businesses operating under the guise of tourism.

According to the Ho Chi Minh City Police, these companies have built a closed-loop fraud process from customer acquisition, consultation, contract signing to complaint handling, creating a vicious cycle that forces customers to continuously spend more money without being able to recover their capital.

The two ringleaders of the fraudulent business at the police station. (Photo: Police)

Currently, the Ho Chi Minh City Police Investigation Agency is continuing to expand the investigation, clarify the roles of related individuals, and search for assets to help compensate the victims.

Calling on victims to provide information.

Colonel Nguyen Van Minh, Head of the Office of the Criminal Investigation Agency (PC01), said that in these cases, the perpetrators often target elderly people, luring them with gifts, travel vouchers, "free" vacation packages, and promising unusually high returns far exceeding bank interest rates.

"I urge the public to be vigilant, to educate family members and the community, and to carefully consider all factors before participating in investments; when there are any suspicious signs, people should promptly report and cooperate with the police."

At the same time, I urge anyone who has been or is a victim of these fraudulent companies to quickly go to the nearest police station to report the incident and provide information. The cooperation of the public is a crucial factor in helping us investigate, expand the case, and recover the stolen assets." Colonel Minh said.