Mr. Trinh Van Quyet, former Chairman of the Board of Directors of FLC Group Joint Stock Company, before being arrested. (Photo: Government Newspaper)
According to the investigating agency, there is sufficient evidence to determine that from 2014-2016, Mr. Trinh Van Quyet instructed his sister, Ms. Trinh Thi Minh Hue, to ask individuals who were leaders, employees of companies within the FLC system, and relatives to act as shareholders, sign documents for Ms. Hue to use as procedures for depositing, transferring, withdrawing money, creating a flow of capital through accounts, legally contributing fake charter capital to Faros Company.
Most individuals did not go directly to the bank to carry out procedures for depositing, transferring, and withdrawing money, but the traders, controllers at the branch of a major bank in Thanh Xuan still agreed to carry out these transactions according to signed documents for Ms. Hue to legally create a flow of capital by fake contribution.
The investigating agency stated that this violated clause 2, Article 12 of Decision No. 6440/QD-NHBL of this bank. However, when carrying out the transactions, the transactions in the accounts of individuals had enough funds to carry out the transactions, the documents were complete in form, content, and had full signatures of the account holders as regulated.
The investigating agency believes that the traders were unaware of the purpose of depositing, withdrawing, and transferring money, for the purpose of inflating capital, listing, and misappropriating money from investors. Moreover, they did not benefit from their actions but only received a monthly salary.
Therefore, the investigating agency asserted that there is no basis to consider criminal liability for the 13 mentioned traders, controllers, but they recommend that the State Bank consider strictly handling the above violations.
Prior to this, the Criminal Investigation Agency (C01) of the Ministry of Public Security has completed additional investigation and proposed prosecution of 51 defendants in the case of “stock market manipulation, asset misappropriation and intentionally publishing false or withholding information in securities activities, and taking advantage of positions, powers while performing public duties” at FLC Group Joint Stock Company (FLC Group) and related companies.
Among the 51 defendants proposed for prosecution this time, there are 13 defendants proposed for prosecution for the offense of stock market manipulation; 23 defendants proposed for prosecution for the offense of asset misappropriation and fraud; 4 defendants proposed for prosecution for the offense of taking advantage of positions and powers while performing public duties; 3 defendants proposed for prosecution for the offense of intentionally publishing false or withholding information in securities activities; 8 defendants proposed for prosecution for 2 offenses of stock market manipulation and asset misappropriation, including Mr. Trinh Van Quyet, former Chairman of FLC Group.
According to the conclusion, from May 26, 2017 to January 10, 2022, Mr. Quyet instructed his two sisters and some others to continuously carry out transactions using multiple securities accounts to manipulate the market.
At the beginning of each trading session, Mr. Quyet’s group was provided with a manipulation quota to place orders for AMD, HAI, GAB, ART, FLC. The defendants then continuously carried out large-scale manipulative buying and selling transactions to create artificial supply and demand in 562 trading sessions.
Regarding FLC stock, there was a significant price fluctuation in the trading session on January 10, 2022 when it hit the ceiling at 24,100 VND/share and then rapidly dropped to the floor at 21,150 VND/share (a decrease of 12.9% in one session).
According to the investigating agency, in this session, Mr. Quyet instructed his sister to “secretly” sell 74.8 million FLC shares with a total matched value of 1,600 billion VND.
The investigating agency accused Mr. Quyet and his accomplices of manipulating 5 stocks: AMD, HAI, GAB, FLC, ART, and illicitly profiting 723 billion VND.
In addition, Mr. Quyet also instructed his accomplices to inflate the charter capital of Faros Company from 1.5 billion VND to 4,300 billion VND with the aim of misappropriating investors’ money.
Afterwards, Faros Company proposed to register for listing 430 million ROS shares on the Ho Chi Minh City Stock Exchange to sell, then misappropriating over 3,600 billion VND of investors’ money, according to the investigating agency.
