Beverage Mogul and Daughters Accused of Engaging in $32 Million Fraud

Tran Qui Thanh, the chairman of the prominent beverage company Tan Hiep Phat, along with his two daughters, is alleged to have misappropriated property valued at VND767 billion ($31.59 million) from individuals who borrowed money from them, according to police reports.

The Ministry of Public Security is recommending charges of “appropriation of property via abuse of trust” against Thanh (70), Tran Uyen Phuong (42), and Tran Ngoc Bich (39). Phuong holds the position of deputy CEO at Tan Hiep Phat, and Bich, formerly the CEO of the company, is currently under investigation but not in custody.

Tan Hiep Phat is renowned for producing a diverse range of beverages, with its Zero Degree Lemon Green Tea being a standout product.

Police investigations reveal that Thanh and his daughters frequently provided loans to borrowers, conditioning the disbursement of funds on the transfer of property units or shares to them as collateral. In loan contracts, the reported value of these assets was often significantly understated.

Borrowers, under the impression that they were transferring assets to Tan Hiep Phat, unknowingly transferred them to Thanh personally. This manipulation of paperwork, facilitated by Thanh’s daughters, ensured that the assets were redirected to Thanh.

Even when borrowers repaid the borrowed funds with interest, Thanh allegedly used various pretexts to withhold the return of the assets he had acquired.

During the period between 2019 and 2020, Thanh and his daughters are accused of taking assets from four individuals, comprising two property projects and 35 land lots, with a combined value of VND767 billion.

Thanh was arrested in April on charges of illegally appropriating property, while Phuong was also arrested. Bich, implicated in collusion with their father, is currently under investigation but not in custody.

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