Pham Thi My Hanh before being arrested for defrauding investors’ money in a ginseng farming scam. Photo taken by the police
A Hanoi businesswoman has been arrested for allegedly soliciting investment in a non-existent high-end ginseng farming project in order to defraud people of VND600 billion ($24.6 million).
Pham My Hanh, chairwoman of My Hanh Corporation, had taken people’s money through a Ponzi scheme, police in Cau Giay district said on Sunday.
She had managed to raise 1.2 trillion VND to “cultivate” Ngoc Linh ginseng, one of the most valuable varieties in the world, and pocketed half of the money.
Police failed to verify detailed spending of the remaining VND600 billion, although they said Hanh used part of it to pay investors, part to buy real estate and part for personal expenses .
Hanh established her company in 2017 and falsely announced that she was engaged in cultivating Ngoc Linh ginseng in some localities and made high profits.
It managed to attract more than 1,000 investors by promising to pay interest of 24 to 48% per year.
