Pho Duc Nam, a popular TikToker known as Mr. Pips, has been arrested for allegedly masterminding a massive scam that swindled investors out of hundreds of millions of dollars. Authorities uncovered a fraudulent network based on fake securities brokerage models, leading to the arrest of Nam and his accomplices.
The 30-year-old from Ba Ria-Vung Tau, along with co-conspirator Le Khac Ngo, 34, and 24 others, faces charges including fraudulent appropriation of property, money laundering, and failing to report criminal activities. The suspects manipulated individuals into investing large sums into fake trading platforms and fraudulent opportunities.
Nam, who gained fame on TikTok and YouTube for showcasing his lavish lifestyle and offering financial tips, used his social media presence to lure followers into his investment schemes. His flashy posts and videos painted an image of success, convincing many to trust his advice and join his investment groups. However, behind the glittering facade, investigators have revealed a much darker reality.
The scheme, which began in June 2019, involved the creation of a fake securities brokerage network, utilizing shell companies and e-wallets to collect funds. The scammers invited clients into private chat groups where they coached them on depositing and withdrawing money. As trust grew, victims were encouraged to make larger investments, only to see their accounts drained by manipulated platforms. The fraudsters even promised to help victims recover their losses, pushing them to reinvest and fall victim once again.
The scam was further bolstered by a fake website, artexvina.co, which claimed to be a legitimate investment consultancy offering expert advice on international stock trading. The site even presented itself as having branches across Vietnam and Cambodia and recruited employees to approach potential clients. They promoted investments in major multinational companies such as Facebook, Apple, and Microsoft, guaranteeing high returns.
In a significant operation to dismantle the fraud network, police seized assets worth over VND5 trillion (approximately $197 million). These included cash, gold, properties, vehicles, and bonds. The investigation, led by Hanoi prosecutors and police, continues to expand as authorities work to identify more victims and potential accomplices.
Nam, born in 1994, built a substantial following online by offering videos on financial topics, including forex trading, market analysis, and investment strategies. He frequently showcased luxury cars, expensive watches, and lavish vacations, further cementing his image as a successful trader. However, as the scam unraveled, his social media presence vanished, and he was eventually arrested.
While some investors were shocked by the news, others had grown skeptical of Nam’s claims, suspecting that he was using his platform to exploit their trust for personal gain. His association with the recently shut-down GFTK trading platform raised further red flags. The scale of the fraud, with seized assets totaling nearly $200 million, highlights the sophisticated nature of the scam and the lasting impact on its victims.
