Business director sentenced to suspended sentence for "Social insurance fraud

Hà Anh |

On September 17, the People's Court of Region 6 - Hanoi City, opened a first-instance trial to prosecute the business owner for the crime of "Social insurance fraud".

According to Hanoi City Social Insurance (BHXH), during the data review process, Chuong My District Social Insurance (now Chuong My grassroots social insurance) proactively reviewed B.T private enterprise (DNTN) with unusual maternity benefits payment frequency; the unit issued a decision to inspect the unit and discovered many violations such as job application files created after the contract signing date, CVs erased, signatures not matching...

Immediately after that, Chuong My Grassroots Social Insurance reported to Hanoi City Social Insurance and forwarded a crime report to the Investigation Police Agency (CSĐT) - Chuong My District Police on January 13, 2025. By February 12, 2025, the Investigation Police Agency had initiated a criminal case.

Chuong My Grassroots Social Insurance also proactively coordinated with the Investigation Police Agency and the People's Procuracy (VKSND) of Region 6 of Hanoi City to provide relevant dossiers, documents, and information upon request to serve the investigation and prosecution work.

According to the investigation results, it was determined that from 2022 to 2024, taking advantage of the application of policies for employees to enjoy maternity benefits when participating in compulsory social insurance, Dang Dinh T. directed his wife, daughter, daughter-in-law and outsourced accountant of DNTN B.T to receive social insurance deposits from 12 turns of people who are individuals acquainted with T. and family members; helping these individuals receive maternity and health recovery benefits paid by Chuong My grassroots social insurance.

To legitimize being eligible for maternity benefits, T. directed the creation of fake salary payment slips, maternity allowance payment slips, and allowance payments for officials and employees, causing damage to the social insurance fund of 409,670,000 VND. In 2021, 2 maternity cases were resolved (62,960,000 VND); in 2022, 4 maternity cases were resolved (128,020,000 VND) and 1 health recovery case (2,235,000,000 VND); in 2023, 4 maternity cases were resolved (135,560,000 VND) and 3 health recovery cases (9,795,000 VND); in 2024, 2 maternity cases (68,400,000 VND) and 1 health recovery case (2,700,000 VND) were resolved.

To date, DNTN B.T has remedied 100% of the damage with an amount of 409,670,000 VND.

On July 29, the People's Court of Region 6 - Hanoi City issued Decision No. 584/2026/QDXXST-HS to bring the case to first-instance trial for the criminal case against defendant Dang Dinh T. (Director of private enterprise B.T) prosecuted by the People's Procuracy of Region 6 - Hanoi City for the crime of "Social Insurance Fraud" as prescribed in point c, clause 2, Article 214 of the Penal Code, Chuong My Grassroots Social Insurance participates in the proceedings as a civil plaintiff.

The first-instance trial took place at 9:00 am on September 17 at the headquarters of the People's Court of Region 6 – Hanoi City.

The trial results, based on the assessment of the nature and severity of the defendant's actions as dangerous to society, infringing upon the order of management of payment and enjoyment of social insurance benefits of the State and infringing upon the legal ownership of assets of the social insurance agency, and considering mitigating circumstances and the defendant's sincere confession of the actions, at the same time, the defendant has remedied the entire amount of 409,670,000 VND.

The Trial Panel agreed with the investigation results and the content of the indictment announced by the Procuracy at the trial, sentencing Dang Dinh T. to 18 months in prison but suspended sentence, probation period of 36 months for the crime of "Social Insurance Fraud".

The entire amount paid by enterprise B.T to Chuong My Grassroots Social Insurance for 11 cases that did not have time to work actually at DNTN B.T was confiscated and contributed to the State budget, with the social insurance contribution amount of 1 remaining case, because Chuong My Grassroots Social Insurance promptly detected and stopped paying benefits, Chuong My Grassroots Social Insurance must refund the social insurance contribution amount of this case.

According to Article 214 of the 2015 Penal Code, social insurance fraud is the implementation of one of the following acts to appropriate money or cause damage, including: Creating fake dossiers or falsifying the content of social insurance dossiers, unemployment insurance dossiers to deceive social insurance agencies; using fake dossiers or dossiers that have been falsified to deceive social insurance agencies to enjoy social insurance and unemployment insurance benefits.

Hà Anh
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