Vietnamese authorities arrested Le Xuan Giang, chairman of the board, and Nguyen Thi Thuy, deputy general director, of the collapsed Lien Ket Viet scheme last Friday. They face charges of fraud and appropriation of assets.
Lien Ket Viet operated as a chain-recruitment scheme selling "detox machines, different types of dietary supplements, and others." The company claimed affiliation with the Ministry of National Defense and boasted awards from the prime minister. Affiliates paid $384.85 for a business code and product selection. This purchase qualified them for commissions upon recruiting new members who also paid the fee. The company advertised average earnings of $20,093 after five years.
Founded in 2010, Lien Ket Viet launched its multi-level marketing operation in 2014 after securing a license from the Ministry of Industry and Trade. Since then, approximately 45,000 affiliates have reportedly invested $85 million. The scheme collapsed when early participants failed to achieve the promised earnings. Reports to the Ministry of Public Security began surfacing in late 2015, detailing the company's failure to pay commissions.
Following affiliate complaints, Vietnamese authorities initiated an investigation. Giang, Thuy, and five associates were apprehended. The day after their arrest, Lien Ket Viet's headquarters, a space spanning hundreds of square meters, was found empty, with no furniture or employees present. Police seized $2 million from a bank account registered to Giang. The whereabouts of the remaining $83 million invested by affiliates remain unknown. Investigators stated that company leaders funded payouts to earlier members with deposits from new recruits, a cycle that sustained the operation. Authorities have dismissed Lien Ket Viet's claims of government backing.