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Around 250 plaintiffs in an alleged fraudulent land investment scheme linked to businessman Hy Kimhong gathered at a court hearing in Phnom Penh on Wednesday, demanding repayments and a new arrest warrant as the long-running case nears its third year.
Hundreds traveled from several provinces to attend the third hearing in a fraud case involving Kimhong’s firm, Piphup Deimeas Investment, which thousands across the country say cost them tens of millions of dollars after the company failed to deliver promised monthly returns or land in gated community projects. Protesters also briefly blocked a road outside the court over delays in the verdict.
Many complainants, most from Kampot province, say they are struggling to repay loans taken from banks and microfinance institutions to finance their investments.
Kimhong, a former “oknha” – an honorary title granted to individuals who donate at least $500,000 to the government – was arrested in August 2023 and charged with fraud in multiple schemes. He has denied wrongdoing and was released on bail two months later. The trial has since made little progress.
Seng Han, a representative of the plaintiffs, said lawyers for the victims had submitted their final arguments, seeking $26 million in compensation and about $10 million in moral damages. They also requested prison terms of between two and five years for Kimhong and 18 associates.
Han said the court would deliver a verdict within 30 days after both sides submit additional documents.
“The court is maintaining its original position by continuing the prosecution, while compensation or arrests will depend on the final verdict,” he said.
Run Narin, from Kampong Cham province, said he feared the alleged victims might never receive justice. He also worried about further court delays, saying many could no longer afford loan repayments and were suffering psychological stress, while some children had dropped out of school.
“I do not know whether the court can resolve this case or not. People across the country were deceived, but the company only sent minor representatives to handle the matter without taking responsibility,” he said.
Narin said he invested $16,000 in the scheme and has spent the past year struggling to cover more than $400 a month in interest payments.
Spokesperson for the Phnom Penh Municipal Court Y Rin did not immediately respond to a request for comment.
Chhouk Vuth, from Kampot province, said only Kimhong’s re-arrest could speed up the case because the court had yet to rule on sentencing or compensation.
The group, of which 10 representatives were allowed into the courtroom on Wednesday alongside representatives of Piphup Deimeas Investment, also appealed to the court to ask microfinance institutions to suspend debt repayments.
Several that spoke with CamboJA News, said they have sold their property to repay loans, while others claimed the debt burden had driven some people to suicide.
Taing Sinhong, a lawyer representing the plaintiffs, said the third hearing in the drawn-out case had now reached the final arguments stage. The main issue remaining, she said, was that compensation structures and amounts for individual complainants had not yet been fully compiled.
She added that lawyers for the company recognized only 761 families as eligible for repayment claims, while the plaintiffs say 1,115 families were affected. Sinhong said some complainants would still need to submit additional supporting documents to strengthen their claims, despite already providing substantial evidence.
“In my final conclusion, I requested that the defendants be convicted of fraud because the scheme was organized and coordinated,” she said.
Sinhong also noted that more than a dozen of Kimhong’s bodyguards were detained in 2023 after allegedly blocking authorities and using violence during an attempt to arrest him.
Seng Heang, deputy prosecutor at the Phnom Penh Municipal Court, said prosecutors had asked the court to impose the maximum penalty on the defendants.
“The court has made every effort to use legal mechanisms to resolve this case based on facts and the law, especially by giving the utmost consideration to compensation for the victims in accordance with legal principles and reasoning,” he said.
Calls to Kimhong’s number listed in corporate records went unanswered.
Yi Soksan, a senior investigator at rights group Adhoc, citing similar cases, said investment schemes involving real estate purchases with promised returns appeared to lack accountability despite the companies being officially registered with the Ministry of Commerce.
He said only the government could help resolve the issue and restore public confidence.
“We urge the government to take responsibility for each company operating in Cambodia, because if the government did not recognize them, citizens would not dare to invest their money,” Soksan said.
