Investigators from the HCMC Police Department told the local media on Friday that they were working with the two founding brothers of Alibaba – chairman Nguyen Thai Luyen, 34, and general director Nguyen Thai Linh, 30 – to determine more about their alleged asset misappropriation fraud.
Established in May 2016, Alibaba has employed more than 2,600 people.
A preliminary investigation showed Alibaba has bought up to 600 hectares of farmland, and later had others set up 40 bogus property projects on them, including 29 in the southern province of Dong Nai, nine in neighboring Ba Ria-Vung Tau Province, and two in the south-central coastal province of Binh Thuan.
The firm has yet to complete legal procedures for any of these projects, and local State agencies have not approved or licensed them, either.
However, the firm has posted false advertisements to offer parcels of land from the projects for sale. As of late June this year, more than 6,700 land buyers signed contracts with the firm, with deposits amounting to more than VND2.65 trillion (US$114 million).
The municipal police are launching an investigation into the case, in order to identify other individuals. They have urged Alibaba’s clients to provide additional evidence.
Further, investigators from the involved provinces are looking into possible violations on land use, tax evasion, and asset misappropriation fraud committed by Alibaba and its local branches.
