Cambodian Tycoons Face Fraud Allegations Over Real Estate Sales: Thousands Caught in Loan Repayment Crisis

In a series of shocking developments, prominent Cambodian tycoons are under investigation for alleged fraud involving the sale of real estate to thousands of vulnerable individuals, resulting in a loan repayment crisis.

Two Top Businessmen Charged with Fraud

1. Hy Kimhong: Director of Piphup Deimeas Investment Co. was arrested and charged with fraud.
2. Chea Saron: Director of Chea Saron Realty Co. faced accusations of fraud from over 2,000 families.

Hy Kimhong’s Misdeeds

• Failure to deliver monthly promised dividends from land investments or homes in gated community projects.
• Over 1,000 lawsuits lodged against him, accusing him of cheating investors out of approximately $21 million.
• Initial monthly dividends provided financial security for farmers and sellers, but dividends stopped in April, leaving investors in debt.


Chea Saron: A Tangled Web of Fraud

• over 2,000 families in Kampot and neighboring Takeo province accuse him of fraud.
• Charged with defrauding investors out of an estimated $40 million.
• Delayed or stalled real estate projects have left investors uncertain.


Three other business figures - musical producer Leng Navatra and Nuon Ak - have also faced criticism on social media and complaints to local authorities over unfulfilled real estate projects.

The Impact on Ordinary Investors

Oy Chantha’s Story

• $20,000 microfinance bank loans taken out for his son’s investment in Piphup Deimeas.
• Dividends stopped in April, leaving the family in a precarious situation, with loan repayments still due.

Heng Ith’s Dilemma

• Invested $10,000 in 2020, expecting a spot in a borey.
• Received dividends of $250 monthly, leading her to invest more, and borrow extensively to do so.
• When the projects failed to materialize and dividends stopped in April, Ith was left with substantial debt.

Previous Instances of Real Estate Fraud in Cambodia

1. Some small-time oknhas try to boost their image with real estate schemes but lack resources/experience.
2. Lack of oversight results in unfinished projects and blurred lines between legitimate and illegitimate businesses.

The Construction Sector’s Slowdown

1. High inflation leading to repayment difficulties for borrowers.
2. Recent U.S. Federal Reserve interest rate hikes impacting Cambodia’s real estate market.
3. Cash flow issues for developers due to the slowdown in construction.

Provincial Authorities’ Response

Spokesperson for Kampot province, Ung Chhay, acknowledged the widespread occurrence of fraudulent land investment schemes but could not provide an exact number of affected individuals. He stated that they have sought leniency from financial institutions with regards to repayments while they search for solutions.