Update: Phnom Penh Minicipal Court spokesperson Y Rin confirmed that an investigative judge decided to charge tycoon Hy Kimhong with aggravated fraud and five of his 13 arrested bodyguards, Chhim Sophea, Mech Sotheara, Buth Rey, Ke Vicheka and Ly Sovannara with aggravated violence. The other eight bodyguards were released. Rin declined to provide further information.
A Phnom Penh Municipal Court investigative judge continued questioning Friday of tycoon Hy Kimhong, who was arrested earlier this week for allegedly defrauding thousands of families in a land fraud scheme.
The judge began the closed-door questioning on Thursday, following three days of questions from the prosecutors, according to the court’s spokesperson Y Rin. Alongside Kimhong, owner of the real estate firm Piphup Deimeas Company, were his 13 bodyguards, arrested for allegedly violently obstructing his arrest.
“Right now the judge is continuing to question them. Because there are many people, that’s why it takes time,” said Deputy Prosecutor Seng Heang on Friday afternoon.
On Wednesday prosecutors filed aggravated fraud charges under Article 380 of the Penal Code for Hy Kimhong and aggravated violence charges under Article 218 for the body guards, according to the prosecutor’s spokesperson Plong Sophal.
The judge will decide whether or not to accept the charges, as well as whether those charged will be released on bail or sent to prison.
Over a thousand lawsuits have been filed against the company related to the alleged land fraud scheme. Participants say representatives from the company approached them at their homes, telling them they would be guaranteed monthly payments if they bought land in Kampong Speu. Some took out massive loans they would otherwise not be able to afford in order to participate, but said they stopped receiving payments from the company in April.
On Wednesday, at least 100 people came to Phnom Penh Municipal Court in order to file their complaints against Kimhong. Citizens came from provinces including Kandal, Kampong Chhnang and Kampong Cham.
According to the Kampot Provincial police chief, as of Wednesday Kampot residents had filed 1105 lawsuits against the Piphub Deimeas Company after losing more than $21 million to the alleged scam.
Thol Sokhorn of Kandal province, who filed a complaint at the court on Wednesday, said she doesn’t understand much about the process of investing. But she said she took out a loan in 2022 to buy land in Kampong Speu because company staff told her she would get a monthly payment in return. Factoring in the loan payments, she hoped to make a monthly profit of $42.
“I borrowed $20,000 from Woori Bank and I pay monthly interest $468 while I got the profit from the Piphub Deimeas Company only $510 per month. Now I don’t have the ability to earn money [to pay off] the debt,” she said.
Her last payment from Piphub Deimeas was in March, she said.
Sokhorn, like other victims, said what she wants now is for the court to help provide them with justice, including the money to pay back the bank. She doesn’t care about getting a monthly profit from the investment anymore.
“I hope the court could find me justice and get my money back,” she said. “I swear I won’t believe in that kind of investment again, that is a lesson in my life.”
As for the questioning happening this week, she is concerned that if Kimhong is sent to prison instead of released on bail, no one will pay her money back.
The Interior Ministry’s Prisons Department spokesman Nuth Savana said he had not received any information about the case yet, but said his department will bring Kimhong and the bodyguards to prison if the judge orders it.
Kampot provincial Police Chief Mao Chanthurith told CambodJA Wednesday that the authorities would continue to investigate the firm.
In a separate similar case, Chea Sarna, owner of Chea Saran Real Estate Company, was arrested in April after about 2,000 families filed a lawsuit against him and his colleagues. He was charged with aggravated fraud and sent to Kampot Provincial Prison on April 27.
Update: This story has been updated at 12:03pm on August 12 to provide further information from the Phnom Penh Municipal Court spokesperson Y Rin.
