Schuette Secures $100K in Restitution for Victims Scammed by Phony Stock Scheme Peddler

LANSING - Michigan Attorney General Bill Schuette today announced the Attorney General's Corporate Oversight Division has secured approximately $100,000 in restitution for the victims of Hiep The Trinh, 45, of Fullerton, California who targeted Michigan's Vietnamese community with extravagant investment scams.

"These funds will help the Michigan victims of this elaborate phony stock scheme begin to rebuild their lives," said Schuette. "If an investment sounds too good to be true, it usually is. Consumers should always exercise caution investing their hard-earned money."

Trinh pleaded no contest to Racketeering, a felony punishable by up to twenty years in prison and/or a $100,000 fine. Trinh also pleaded no contest to two counts of False Pretenses Over $20,000, a felony punishable by up to ten years in prison. Without the Attorney General's agreement, Trinh's victims would be unlikely to receive restitution in a timely manner. The charges result from consumer complaints to the Department of Attorney General. Schuette thanks the Securities Division of the Department of Licensing and Regulatory Affairs (LARA) for their assistance investigating this case.

Between November 2005 and October 2008, Trinh used his longstanding ties to Michigan's Vietnamese community to perpetrate a complex investment scam.  Trinh convinced his victims that they could get in on the "ground floor" of a promising high-tech, oil additive manufacturing company, "NRG," before the company issued a public stock offering. The company never went public and was actually marketing product purchased from another supplier re-packaging it in NRG bottles. 

In 2008, Trinh sold shares in an oil field in Kazakhstan operated by Turan Petroleum. Trinh made promises similar to his NRG deal offering large returns when Turan went public.  The company never went public and the investors received no return on their investment.

Trinh pocketed the money he collected to support an extravagant lifestyle that included luxury cars, expensive jewelry, a multi-million dollar home, and gambling junkets to Las Vegas where he would court potential victims. Schuette estimated in June 2012 approximately $750,000 in fake stocks were allegedly sold to eleven victims. Since then, more victims have come forward and filed complaints with the Department of Attorney General. Schuette now assesses Trinh defrauded approximately $867,000 from his victims.   

Trinh was arrested by the Fullerton Police Department, in Fullerton California on June 12, 2012.  Trinh will be sentenced by Judge Janice Cunningham in the 56th Circuit Court, Eaton County on January 10, 2014.  The defendant is not permitted to leave the State of Michigan pending sentencing.

Schuette asks any citizens who believe they may be a victim of an investment scam to file a complaint with the Attorney General's Consumer Protection Division.

Schuette encourages consumers to exercise caution before investing their money with those who promise exorbitant returns.  Key tips to avoid falling victim to investment fraud include:

• Check out your broker or adviser. Confirm that your broker and financial adviser is registered and in good standing. Contact the Bureau of Commercial Services with the Department of Licensing and Regulatory Affairs, at 517-241-6345, to check out your broker or adviser.
• Beware of strangers touting strange deals. Trusting strangers is a mistake anyone can make when it comes to their personal finances.  Almost anyone can sound nice or honest on the telephone.  Say "no" to any investment professional who presses you to make an immediate decision, giving you no opportunity to check out the salesperson, firm and the investment opportunity itself.  Beware of anyone who suggests investing your money into something you don't understand or who urges that you leave everything in his or her hands.
• Take your time - don't be rushed into investment decisions. Salespersons who use high-pressure tactics to force an investor into an immediate decision are almost always pitching frauds. They don't want you to think too carefully or find out too much because you may figure out that it's a scam.
• Keep tabs on your investments. Be wary when a financial planner says "leave everything to me," or "the plan is too complicated to tell you."  Everything should be clear and explainable to you.
• Monitor the activity on your account.  Insist on receiving regular statements.
• Ask Questions.  Never be embarrassed or apologetic about asking questions for trading activity that looks excessive or unauthorized.  It's your money, not your broker's.
• Keep Diligent Records.  Keep all of your records relating to your investments, including notes of conversations you have with brokers, salespeople, and financial advisers.

Attorney General Schuette also offers specialized consumer advice for Michigan seniors on how to avoid investment fraud through the Senior Brigade website.

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