Fake milk powder case for pregnant mothers and babies: 8 suspects temporarily detained, shocking confessions

Police have just broken up a fake milk powder production line that earned nearly 500 billion VND, and seized more than 80 different types of milk. Among them, there are many products familiar to consumers.

On the evening of April 12, news from the Ministry of Public Security said that the Ministry of Public Security's Investigation Agency had prosecuted and issued temporary detention orders for 8 subjects related to the production and trade of fake milk in extremely large quantities in Hanoi and neighboring provinces, causing public confusion.

Accordingly, the subjects Hoang Manh Ha (Director of Rance Pharma Company from August 2021 to August 2024, shareholder of Hacofood Company); Vu Manh Cuong (Director of Hacofood from April 2022 to October 2024, shareholder of Rance Pharma); Dang Trung Kien (Deputy Director of Rance Pharma, Hacofood) were all prosecuted for the crimes of "Production and trading of counterfeit food products" and "Violation of accounting regulations causing serious consequences".

Defendant Ho Sy Y (shareholder of Rance Pharma, Hacofood) was charged with "Producing and trading in counterfeit food products". Meanwhile, Nguyen Thanh Luan (Director and legal representative of Rance Pharma since August 2024); Nguyen Van Tu (Director of Hacofood since October 2024); Nguyen Thu Thuy (Chief Accountant of Rance Pharma, Hacofood); Nguyen Thi Mai Huong (accountant in charge of debt management and treasurer of Rance Pharma, Hacofood, released on bail) were prosecuted for "Violating accounting regulations causing serious consequences".

During the search of 19 locations including factories and offices of the subjects, the police seized 84 different types of powdered milk products with a quantity of 26,740 boxes/90 production batches and many documents and objects serving the investigation. Initial determination was that from 2021 to present, Rance Pharma and Hacofood have left out the accounting books to declare and pay actual revenue tax, causing a loss to the State budget of more than 28 billion VND.

According to authorities, in about 4 years of illegal operation, the ring

has produced 573 brands of powdered milk of various types, for people with diabetes, kidney failure, premature babies and pregnant women. These products are advertised and announced to contain bird's nest extract, cordyceps, macadamia powder, walnut powder... However, through actual inspection, it is found that there are absolutely no such ingredients, the quality is below 70% of the announced level, enough to be identified as fake goods.

The defendants confessed to removing some of the raw materials and replacing them with some additives. Notably, Rance Pharma and Hacofood products are available nationwide, distributed through diaper stores, supermarket chains, etc. in many provinces and cities. Some products are even advertised by celebrities and have their quality evaluated by experts.

Among them, many products have been very popular in the market, familiar to consumers. Such as: Cilonmum Colos Bab.y 24h, Colos Pedia 24h, For Mum Colostrum 24h, bGludiabet Colostrum 24h... - distributed by International Pharmaceutical Group Joint Stock Company.

Talacmum product lines include: For Mum, Gain, Gludiabet, Goat Kids, Goat Pedia, IQ Grow... then Sure IQ Sure Gold: Nutritional products for the whole family; Nance Colostrum 24H Kid and Nance Goat Pedia. Most are advertised as using imported ingredients from New Zealand and applying modern production technology.

According to the investigation agency, in August 2021, Cuong and Ha grasped the domestic demand for powdered milk, so they established Rance Pharma Company (in Van Phuc Ward, Ha Dong) and Hacofood Group Company (in Phu Luong New Urban Area, Phu Luong Ward, Ha Dong District, Hanoi) to organize the production, trading and consumption of fake powdered milk products.

At these two companies, the Cuong - Ha duo, as major shareholders, directly associated, contributed capital and mobilized shareholders. In addition, Ha also signed documents as "legal representatives". In addition to the two established companies, the subjects also entered into joint ventures and associations in the form of contributing shares with many other subjects to establish 9 more companies, with the purpose of registering the product lines' declaration records as well as directly trading, distributing and consuming products manufactured at the factories of Hacofood and Rance Pharma.

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