Vietnamese Citizen Behind Fraudulent Laokham Company
The director of Laokham Consultant Investment Sole Co Ltd, which defrauded the public into making investments, has been named as Vietnamese national Vu Manh Coung.
Mr Vu Manh Coung, 48 years, and his head accountant were arrested on January 16 after members of the public accused the company of defrauding them.
The Lao Ecomonic Police department commenced an investigation into the company six months ago after the company was reported to be running a pyramid scheme and failing to return funds to investors.
Since the news broke on Monday, the number of complaints filed against the company has risen to 80, with total public losses valued at over US$1 million.
Those making deposits were both Lao and Vietnamese nationals, according to a statement by the police.
Laokham was formed in 2013 under the guise of providing investment consultancy to its customers, however it abused the trust of customers and invested their money improperly and in violation of Lao laws.
The company took deposits from customers and used the funds to purchase land and other assets, according to an employee who asked to remain anonymous.
It maintained three branches in Vientiane, Savannakhet, and Pakse. Its website is still operational at www.laokham.la.
This is the second such scam run by a foreign investor in Laos, with a case still under investigation against Cambodian national, Huot Sovonn, who duped the public under his Asianface real estate company.