This afternoon, August 5, the Hanoi People’s Court sentenced former FLC Chairman Trinh Van Quyet and 49 accomplices for Fraud and Stock Market Manipulation.
Defendant Trinh Van Quyet being led into the courtroom
Accordingly, the Hanoi People’s Court sentenced Trinh Van Quyet to 18 years in prison for Fraud and 3 years for Stock Market Manipulation, totaling 21 years in prison for both charges.
The defendant, Trinh Thi Minh Hue (Quyet’s sister), was sentenced to 11 years and 6 years in prison for Fraud and 30 months for Stock Market Manipulation, totaling 14 years for both offenses.
Trinh Thi Thuy Nga (another sister of the defendant) was sentenced to 6 years in prison for Fraud and 2 years for Stock Market Manipulation, with a total sentence of 8 years.
In terms of civil liability, for the offense of Fraud, the defendant Trinh Van Quyet and his accomplices were ordered to compensate the victims with more than VND 1,785 billion. Quyet was held primarily responsible.
Regarding Stock Market Manipulation, investors have the right to file a civil lawsuit. Quyet is primarily responsible, and the authorities have the right to pursue further action.
According to the verdict, Trinh Van Quyet inflated the charter capital of FLC Faros Construction Joint Stock Company to list ROS shares on the stock exchange, defrauding money from investors. Faros was established in 2011 with a charter capital of VND 1.5 billion. During the 2014-2016 period, Quyet proceeded to artificially inflate the company’s charter capital to VND 4,300 billion, equivalent to 430 million shares. When FLC Faros listed 430 million ROS shares on the stock market, Trinh Van Quyet directed the sale and appropriated more than VND 3,600 billion from investors.
The first-instance verdict assessed that during the trial, the Council determined that Trinh Van Quyet was the mastermind behind the scheme to inflate and use fictitious capital contributions for Faros, increasing it from VND 1.5 billion to over VND 4,300 billion, and illegally profiting more than VND 3,600 billion. The remaining defendants were considered active accomplices.
Regarding Stock Market Manipulation, the verdict stated that the actions of the defendants in this case undermined state management effectiveness, caused public outrage, and eroded investor confidence. The case resulted in investors losing VND 684 billion due to stock market manipulation.
During the investigation, the defendants cooperated and confessed to their crimes. Trinh Van Quyet took the initiative and encouraged his family to remedy the consequences of the case. His family has contributed to the revolution and actively participated in charitable activities, and local authorities have submitted petitions for leniency in criminal responsibility.
The Court acknowledged the request of Trinh Van Quyet and his wife to cancel the seizure of FLC shares to remedy the consequences of the case. However, these assets have been mortgaged to secure loans, so priority is given to third parties, namely the banks.
