Commune official arrested for embezzling 500 million in flood relief funds to invest in cryptocurrency

The incident in Lam Dong raises an alarm about the management of Relief Funds, in the context of ongoing cases of charity profiteering.

On December 6, 2025, the Criminal Investigation Agency of Lam Dong Provincial Police arrested and searched the workplace and residence of Uc Kim Khoan, a civil servant under the Vietnam Fatherland Front Committee (MTTQ) of Phan Son commune, Lam Dong province ((formerly Binh Thuan)). Mr. Khoan is under investigation for appropriating a large sum of public funds intended to help people recover from flood damage.

Embezzled 500 million VND to pay debts and invest in cryptocurrency

According to initial information from authorities, on November 6, 2025, the Relief Committee – Vietnam Fatherland Front Committee of Lam Dong province transferred a total of 550 million VND to the Relief Fund account of the Vietnam Fatherland Front Committee of Phan Son commune. This funding was specifically designated to support local residents severely affected by the 2025 floods.

Uc Kim Khoan, who was entrusted with coordinating with the accountant to withdraw the money for timely distribution to residents, took advantage of the trust and loopholes in management to commit embezzlement.

Authorities read the decision to prosecute Uc Kim Khoan | Photo: CALĐAfter withdrawing the money, Khoan unilaterally appropriated 500 million VND. He admitted to using the funds to pay personal debts, invest in cryptocurrency, and spend on personal purposes.

This serious violation was only discovered when authorities conducted an inspection and reconciled the figures in the Relief Fund account of Phan Son commune. The case is currently being further investigated by Lam Dong provincial police to clarify the responsibilities of involved individuals, especially regarding management and oversight at the local level.

Legal perspective: Embezzling relief funds is a crime

According to legal experts, embezzling relief money or goods—even if not of high value—when committed by persons with official positions, authority, or those entrusted to manage relief assets, can be subject to criminal prosecution.

• If the offender is a civil servant or official entrusted with managing or distributing relief money or goods and embezzles them, they may be prosecuted for “Embezzlement of property” under the 2015 Penal Code, with penalties ranging from 2 years to life imprisonment, or even the death penalty, depending on the value and nature of the case.
• If the person embezzling does not hold an official position but takes advantage of relief work to misappropriate assets, they may be prosecuted for “Fraudulent appropriation of property” or “Abuse of trust to appropriate property.”

Strict handling of relief fund embezzlement not only protects the material rights of disaster victims but also safeguards the humanitarian spirit and public trust in charity and relief activities.

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