Economic police in Vientiane Capital are holding the founder of Laokham Consultant International Investment Company in custody after members of the public accused the company of defrauding them.
The owner has been detained on suspicion of running a pyramid scheme, and all company assets have been seized.
According to at least 60 official complaints, personal losses of over US$ 1 million have been directly attributed to the Laokham company, which offered high interest returns on investments made by the company on the customer’s behalf.
Depositors were never repaid and were unable to withdraw their funds.
According to a report by the Vientiane Times, the Economic Police Department under the Ministry of Public Security are still investigating.
A notice was issued on Tuesday calling upon members of the public to give information about their dealings with the company, and to provide evidence supporting their losses.
The Laokham Consultant International Investment Company was incorporated in 2013 and has been taking deposits from its customers since that time. It has branches in Vientiane, Savannakhet, and Pakse.
Several such schemes have openly operated in Laos in recent years, including the notorious PS Lao Enterprise, which took funds from over 30,000 people, and whose owner was arrested last year.
Similarly, Asianface Company Ltd featured a similar public outcry, leading to the arrest of Cambodian national, Huot Sovonn.
Source: Lao Post
Photo: Lao Post