Duong Dara, a Secretary of State at the Office of the Council of Ministers and a personal assistant to Senate President Hun Sen, was arrested and charged with fraud on October 10. He is accused of defrauding millions of dollars from at least 400 families in Svay Rieng province through the Phum Khmer Group’s Ponzi scheme between 2020 and 2024.
Plong Sophal, a Deputy Prosecutor and Spokesman for the Phnom Penh Municipal Court, stated that Dara could face a prison sentence ranging from six months to three years if convicted, though he did not provide additional details about the ongoing case.
Lieutenant Colonel Lim Bunna, Deputy Chief of the Municipal Crimes Investigations Unit, confirmed that Dara was apprehended in Phnom Penh following an arrest warrant issued by the Phnom Penh Municipal Court’s prosecutor.
In February of this year, over 400 families from Svay Rieng filed a lawsuit against Dara, his younger brother Duong Virath—an influential shareholder in the Phum Khmer Group—and Okhna Som Sothea, the owner of the Phum Khmer Group. The lawsuit alleges that the trio defrauded the victims through their company’s Ponzi scheme.
Victims reported investing between $10,000 and $120,000 in the Group’s projects, which promised high returns through land purchases. According to the victims, the owners assured them of a monthly interest payment of 4%.
While victims received the promised payments for three to five months, they later reported that payments ceased entirely. Furthermore, those who purchased land from the Phum Khmer Group claimed they did not receive the titles after making their payments.
It’s worth noting that Okhna Som Sothea was also arrested and charged with fraud in June but was released after posting bail of $800,000.
