3,400 smuggled diamonds entered SJC network through illicit scheme: police

Expanding an investigation into a transnational diamond smuggling ring involving 30,000 stones, police have named four suspects who funneled more than 3,400 of them into Vietnam's largest precious metals firm, Saigon Jewelry Company. The economic police division in Thanh Hoa Province on Wednesday put Pham Thi Hong Duyen, 32, head of SJC's business department, and Tran Cong, 51, Tran Huu Thanh Quan, 32, and Hoang Trung Bac, 34, of Ho Chi Minh City under probe for "smuggling." Police announce the decision to launch investigation into the four defendants on July 22, 2026. Photo by VnExpess/Lam Son According to investigators, while serving as SJC's general director, Le Thuy Hang allegedly instructed Duyen to purchase diamonds from Hong Kong, arrange their illegal transport into Vietnam, and add them to the company's inventory.In the ring, Duyen allegedly placed orders and received the smuggled diamonds in Vietnam, Cong sold the smuggled stones to SJC, while Quan and Bac were in charge of delivery.To legalize them, Duyen purported to show SJC had bought back diamonds from its retail buyers.The diamonds were then sent to SJC Golden Dragon Company for inspection before offering them for sale.Investigators said the group split the diamonds into small batches for inspection to allay suspicion.They have seized an additional 354 stones valued at VND68.8 billion (US$2.6 million) since expanding the investigation, bringing the total number of seized stones to 1,239.Based on suspects' statements and documents they unearthed, they have determined that between 2022 and 2024, more than 3,400 smuggled diamonds worth VND500 billion entered SJC's retail system.Hang is already serving a 22-year prison sentence for embezzlement and abuse of position and power in a separate case. Le Thuy Hang, former SJC's general director, at a court in HCMC in September 2025. Photo by VnExpress/Quynh Tran In the diamond smuggling case being investigated since early July, investigators found a transnational gold and diamond smuggling network operating through a closed process and using sophisticated methods to bring goods into Vietnam and legitimize them.Suspects in Vietnam communicated with operators in Hong Kong through encrypted messaging applications to order diamonds, creating private groups to discuss prices and coordinate deliveries.The diamonds would be transported by air through HCMC, Hanoi, Da Nang, and Phu Quoc airports, concealed in luggage, clothing, and shoes to evade customs.Once they arrived in Vietnam, deliveries were organized using multiple layers, with each participant knowing only their specific task.Couriers and recipients reportedly used serial numbers on U.S. dollar bills as authentication codes and enabled automatic message deletion to erase traces of communication.Lieutenant Colonel Tong Dinh Xuan, head of the Thanh Hoa economic police division, said the investigation has been "particularly difficult because the suspects operated across borders, conducted transactions through encrypted platforms, and dealt with diamonds that are small and easy to conceal and require highly specialized appraisal and valuation knowledge."Authorities have determined that the ring had traded more than 30,000 diamonds for around VND1.5 trillion, making profits of more than VND300 billion.The Thanh Hoa police are investigating 31 suspects for "smuggling" and have seized 1,239 diamonds along with large quantities of gold, jewelry, and assets whose legal origin has not been established.Those charged include Dang Ngoc Thao, director of PNJ-LAB Appraisal Company, the gemstone certification subsidiary of Vietnam's largest listed jeweler, Phu Nhuan Jewelry Joint Stock Company, and owners of several gold and gemstone businesses in HCMC, including Le Thi Ngoc My, director of Kim Ly Gold and Gem Company, Nguyen Thi Lien, director of Ngoc Tam Company, and Hoang Thi Thanh Nga, owner of Ngoc Chau Au Jewelry Store.Police said they are seeking to identify the roles of organizations and individuals involved in the smuggling network.