Illustrative image.
According to investigations, from May to October 2023, the ringleader Tran Binh Minh (born in 1982, residing in Hanoi) colluded and lured people to place buy and sell orders for CMS stock, affecting its supply and demand, and thus, its price. Minh bought large quantities of CMS stock at low prices, artificially inflated its price, and then sold it at a profit.
Minh, along with Nguyen Hoang Thi, Le Xuan Cao, Phung Tien Thanh, Ha Duc Dat, Tran Ngoc Son, Tran Ba Tuan, Nguyen Ngoc Son, Tran Anh Tuan, and others formed groups on Zalo and Telegram to promote and influence the trading of multiple stocks, including CMS, guiding investors’ decisions on stocks held by this group. As a result, they significantly impacted the price movement of CMS stock in 2023.
On several occasions, these social media groups accurately predicted the price movement of CMS stock, either for the current trading session or for the next day.
When the stock price peaked in September 2023, Tran Binh Minh and his accomplices sold a substantial amount of CMS stock to cash in on their illicit profits. Many investors suffered losses due to the manipulation of CMS stock prices during this period, which reduced the transparency of the stock market. To buy, hold, and support the price of CMS stock during the manipulation period, Minh’s group used multiple securities accounts to trade CMS stock.
Minh. Photo: CACC
The State Securities Commission identified that during the period from May to October 2023, these accounts bought and sold large quantities of CMS stock, accounting for a significant proportion of the total market volume, triggering suspicious transaction alerts.
According to the police, the initial verification and tracing of securities and bank accounts revealed that: “From May 4, 2023, to October 31, 2023, the subjects colluded and lured others to manipulate CMS stock, making a profit of over VND 10 billion. Tran Binh Minh’s individual securities account made a profit of over VND 5.5 billion from trading CMS stock.”
To facilitate the investigation, the Economic Police Department of Hanoi City Police requests that victims who purchased CMS securities between May 4, 2023, and October 31, 2023, contact the Economic Police Department at 54 Tran Hung Dao Street, Hang Bai Ward, Hoan Kiem District, Hanoi City (telephone numbers: 069.219.6609 or 099.329.7726) before September 30, 2024, for handling in accordance with legal regulations.
According to the Hanoi Police, some individuals are taking advantage of the establishment and use of online groups to call for investment in a group of stocks to manipulate stock prices, negatively impacting the stock market and affecting legitimate investors.
The modus operandi of these individuals is sophisticated and cunning, exploiting the anonymity and widespread reach of the online space. The Hanoi Police are actively and resolutely fighting against these groups to contribute to a healthy, safe, and fair investment environment for investors.
The police advise investors to proactively research information about stocks, the operating and financial situation of listed companies, and make informed investment decisions to avoid being exploited and incurring significant economic losses.
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To manipulate the price of CMS stock, the group led by Tran Binh Minh employed multiple securities accounts to buy and sell the CMS stock. They aimed to create a false sense of liquidity and volume, enticing unsuspecting investors to join the scheme. This orchestrated effort allowed the group to control the stock’s price movement, creating an illusion of stability and potential growth.
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