Siem Reap: Dim Sounnath, a property developer accused a multi-million dollar fraud has been sent to Siem Reap court.
The 36 year old director of ENARITA DEVELOPMENT CO., LTD, Sangkat Phnom Penh Thmei, Khan Sen Sok, Phnom Penh was arrested on orders of the Ministry of Interior after complaints came from investors. As the first complaint came from Siem Reap province, he was transferred for questioning there.
The exact number of investors are not known, but the case could involve hundreds of millions of dollars.
According to a senior police official at the Ministry of Interior, the suspect acted as a property owner of large development projects, including plots, apartments and villas. Investors were promised high monthly dividends, which they received for the first few months, before they dried up.
For example, a victim deposits $ 100,000, and the first month will get $ 25,000, but the after the first one or two months the payments will stop, meaning investors lose half of their money. *These frauds are known as Ponzi schemes.
The perpetrator used accomplices to the provinces, acting as real estate developers, and encouraged people with little money to pool together with others. The scam also took place in Memot district, Tbong Khmum province.
Tbong Khmum provincial police chief Brigadier General Bornath said he had ordered the local police and cops to list the victims, but some are unwilling to come forward.
A senior official also identified the suspect as an officer in the Armed Forces.
Similarly, there are Chinese companies cooperating with Cambodians to lend money without legal formalities, charging high rates of interest and being violent towards late payers. These loansharks are reported to have powerful backers in uniform, with police unwilling to act on complaints. NKD