Vietnam Arrests 51 Executives and Employees in Expanding Vacation Ownership Fraud Investigation

Vietnamese police have arrested 51 executives, shareholders, managers, and employees of a property company accused of running a large-scale vacation ownership scam, as authorities intensify a nationwide crackdown on fraudulent “holiday membership” schemes.

Investigators in Ho Chi Minh City announced that they have expanded their probe into Investment Development Metaland Co., Ltd., alleging the company operated under the guise of selling vacation ownership packages while using deceptive sales tactics to defraud customers.

The latest arrests are part of a broader investigation into multiple companies marketing so-called “vacation contracts” or holiday membership products, an industry that has increasingly come under scrutiny in Vietnam.

According to police, Metaland was established using a business model similar to other companies already under criminal investigation. Authorities allege the firm’s leadership created multiple corporate entities to disguise fraudulent activities and expand operations.

Investigators said the company employed a highly structured sales organization, with executives overseeing finance, human resources, telesales, and marketing teams that worked together to identify, recruit, and persuade potential customers.

The alleged scheme began with telesales agents contacting prospective clients using customer databases, inviting them to promotional events with promises of complimentary resort vouchers or exclusive travel benefits. During these conversations, staff reportedly gathered information about each person’s profession, income, and financial situation to assess their ability to purchase expensive vacation packages.

Customers attending sales presentations were then offered holiday membership contracts advertised as investment opportunities rather than simple travel products. Sales representatives allegedly promised buyers they could rent out their memberships, resell them later, or generate attractive returns, while using limited-time discounts and special offers to pressure customers into signing contracts on the spot.

Police said sales staff were allowed to negotiate prices within pre-approved ranges and received higher commissions for selling memberships at premium prices.

To reinforce customer confidence after payment, the company allegedly transferred money back to buyers under the label of “first-year rental income” from their vacation memberships. Investigators believe these payments did not come from legitimate rental activity but were instead funded using the customers’ own money to create the illusion that the investment program was functioning as promised.

Authorities also allege that company leaders prepared dissolution documents in advance to help shield the business from complaints or criminal investigations. Many employees reportedly resigned or changed their residence after completing sales transactions, making it more difficult for investigators to locate those involved.

Despite those efforts, Ho Chi Minh City Police said investigators spent months tracing victims, collecting evidence, and identifying the roles of individuals throughout the organization.

The investigation also revealed links between Metaland and Times Holdings, another company connected to an earlier vacation ownership fraud case currently under investigation by Hanoi police.

Authorities say the investigation remains ongoing and could expand to include additional companies and individuals connected to similar business models.

The case highlights the risks associated with vacation ownership products, often marketed internationally as timeshare or holiday club memberships. Consumer protection experts have long warned that buyers should carefully examine promises of guaranteed rental income, resale profits, or investment returns, as such claims are frequently used in fraudulent sales schemes around the world.