Accused Trinh Van Quyet
|
The Investigation Police Agency (C01) of the Ministry of Public Security has completed the supplementary investigation and proposed the prosecution of former Chairman of FLC Trinh Van Quyet and 50 other defendants in the case of stock market manipulation occurring within FLC Corporation and related companies and units.
Proposal to prosecute 51 defendants in the stock market manipulation case related to FLC Corporation
Among the 50 defendants, 13 are blood relatives, siblings, and relatives of Mr. Quyet, many of whom are spouses and children. In addition, there are two friends and one driver of Mr. Quyet.
In this case, C01 proposes to prosecute 51 defendants in 4 groups of charges. Group 8 defendants are proposed to be prosecuted for 2 charges of “Stock market manipulation” and “Misappropriation of assets”, including former Chairman of FLC Trinh Van Quyet, along with his two blood sisters Trinh Thi Minh Hue and Trinh Thi Thuy Nga, cousin Trinh Van Dai, son-in-law Nguyen Van Manh (husband of Mrs. Nga), nephew Trinh Tuan and relative Nguyen Hong Nhung.
Group 13 defendants are proposed to be prosecuted for the charge of “Stock market manipulation”, including 4 blood grandchildren of Mr. Quyet, namely Do Thi Huyen Trang, Nguyen Thi Nga, Hoang Thi Hue, and Trinh Van Nam; along with his elder sister Trinh Thi Thanh Huyen and relative Nguyen Quang Trung (husband of Mrs. Nhung).
Group 23 defendants are proposed to be prosecuted for the charge of “Misappropriation of assets”, including Mr. Quyet’s cousin Hoang Thi Thu Ha, along with two friends Nguyen Thanh Binh, Nguyen Tien Dung, and driver Truong Van Tai.
The remaining 7 people from the Securities Company Supervision Bureau, the Vietnam Securities Depository Center, and the Ho Chi Minh City Stock Exchange (HOSE) are proposed to be prosecuted for the charge of “Abuse of position and powers while performing official duties” or “Dissemination of misleading information or concealment of information in securities activities”, none of which are related to Mr. Trinh Van Quyet.
How HOSE leadership helped Trinh Van Quyet misappropriate VND 3,600 billion
According to the investigation conclusion, regarding the act of “Stock market manipulation”, from May 26, 2017, to January 10, 2022, Mr. Quyet directed his blood sister Trinh Thi Minh Hue and accomplices to manipulate the stock market for 5 stocks: AMD, HAI, GAB, FLC, ART, thereby illicitly gaining more than VND 723 billion.
Regarding the act of “Misappropriation of assets”, in August 2012, Mr. Quyet proposed purchasing the shares of Green Belt Entertainment Joint Stock Company for VND 1.5 billion but did not put it into operation immediately. After changing names multiple times, the company was renamed Faros Construction Joint Stock Company. From 2014 to September 2016, Mr. Quyet directed his two blood sisters and several others who were leaders of Faros Company to submit false capital contribution documents totaling over VND 3,100 billion.
In his role as the first Chairman of the Board of Directors of Faros, Mr. Doan Van Phuong (who fled since March 2022 and left for England) directed the members of the Board of Directors and the Chief Executive Officer to issue resolutions regarding the increase in charter capital, preparation of fraudulent capital contribution documents, accounting, and use of fraudulent capital contributions. The investigating agency determined that Mr. Phuong fled to the United Kingdom without giving a statement.
Former CEO of FLC who is on the run, how did he assist Trinh Van Quyet’s deception?
An important link in Faros is Mr. Trinh Van Dai (Mr. Quyet’s distant relative), who was requested by Ms. Trinh Thi Minh Hue to serve as Chairman of the Board of Directors of Faros since 2014, but in reality, Ms. Hue was the one who managed the seals and conducted all activities.
Although no General Meeting of Shareholders was held, with the title of Chairman of the Board of Directors and Deputy General Director of Faros, Mr. Dai signed fraudulent resolutions, contracts, documents, and was listed as a shareholder. Ms. Hue then used this as a basis to fraudulently increase the charter capital.
Before Faros was listed on HOSE, at the direction of Ms. Hue, Mr. Dai returned nearly 47 million shares registered in the name of Faros toTrinh Van Quyet. This was legitimised by 5 transfer contracts but did not involve any payment.
Mr. Dai’s actions, along with those of others involved, helped Mr. Quyet and accomplices fraudulently increase Faros’ charter capital, then list and sell shares to misappropriate over VND 3,600 billion from investors in the stock market.
In the investigation agency, Trinh Van Dai admitted all of his actions but did not acknowledge the intent of misappropriation of assets. He did not benefit from his wrongdoing and only received a salary of VND 39 million per month as the Deputy Head of Materials Department of FLC Land Co., Ltd., and VND 41 million per month as the Deputy General Director of Faros.
Among the 22 former Faros executives, employees of FLC’s companies, auditors, and relatives who were investigated in the supplementary phase, all admitted to their misconduct in helping increase Faros’ capital but denied the accusation of “Misappropriation of assets”.
In addition to C01’s conclusion, there are currently 210 individuals related to Faros and companies within FLC’s ecosystem, who are family members of Trinh Van Quyet and are involved in the act of “Misappropriation of assets” and “Stock market manipulation.” Among them, 187 individuals are identified to be involved in fraudulent activities.
C01 determined that they signed documents such as power of attorney, withdrawal requests, deposits, checks, to facilitate Mr. Quyet’s group to create fraudulent capital flows. The purpose of this action was to legitimize and conceal the fraudulent capital contributions before Faros was listed.
The investigating agency believes that these individuals show signs of the crime of Misappropriation of assets or Concealment of offenses. However, when signing the documents, they did not have a clear understanding of the nature of the matter and only performed individual tasks. These individuals also did not participate in the preparation of capital contribution documents and did not have further exchanges, so C01 proposed not to consider handling them criminally.
210 relatives of Trinh Van Quyet in auxiliary roles aiding the FLC Faros case
How did Trinh Van Quyet and his accomplices use the funds and benefit wrongfully?
