Proposal to prosecute 51 defendants in the stock manipulation case at FLC Group

The Ministry of Public Security's Investigation Police Agency (C01) has just issued a supplementary investigation conclusion on the criminal case and transferred the entire case file to the Supreme People's Procuracy (Department 5), proposing to prosecute 51 defendants in the criminal case related to FLC Group Joint Stock Company.

Implementing the direction of the Central Steering Committee on anti-corruption and negativity and the leadership of the Ministry of Public Security, the Ministry of Public Security's Investigation Police Agency (C01) investigated and handled the criminal case of "Stock market manipulation," "Fraudulent appropriation of property," "Abusing position and power while performing official duties" and "Intentionally disclosing false information or concealing information in securities activities," occurring at FLC Group Corporation, BOS Securities Corporation, Faros Construction Corporation, related companies in the ecosystem of FLC Group Corporation, Ho Chi Minh City Stock Exchange, the Department of Supervision of Public Companies under the State Securities Commission and the Vietnam Securities Depository, carried out by Trinh Van Quyet (former Chairman of the Board of Directors of FLC Group) and his accomplices and individuals from the state management agency in the securities sector.

Regarding the act of "Manipulating the stock market," the Investigation Police Agency concluded that from May 26, 2017 to January 10, 2022, Trinh Van Quyet directed Trinh Thi Minh Hue (Quyet's sister) and her accomplices to borrow the names of employees, relatives, and family members to prepare documents and procedures for Hue to establish a company, open a securities account, and a bank account for Hue to manage and use to manipulate the stock market for 5 stock codes AMD, HAI, GAB, FLC, ART. When the stock price increased, under Quyet's direction, Trinh Thi Minh Hue sold shares to the market, illegally profiting more than 723 billion VND.

Regarding the act of "Fraudulent appropriation of property," from 2014 to September 2016, Trinh Van Quyet directed individuals who were leaders and employees of Faros Company, companies under FLC Group; relatives and family members to act as shareholders contributing capital, to carry out tricks of creating and signing fake capital contribution documents, inflating the capital contribution to Faros Company by more than VND 3,102 billion, increasing the company's charter capital from VND 1.5 billion to VND 4,300 billion; then creating documents, requesting state securities management agencies to approve the registration of a public company, register securities depository and list more than 430 million shares formed from the fake capital contribution of Faros Company at the Ho Chi Minh City Stock Exchange.

After listing Faros Company's shares on the stock exchange, from September 2016 to March 2022 (the time of prosecution and detention), Trinh Van Quyet and his accomplices sold more than 391 million shares formed from fake capital contributions held at Faros Company, earning more than VND 4,818 billion, of which he appropriated more than VND 3,620 billion from investors in the stock market.

Regarding the acts of "Abusing position and power while performing official duties" and "Intentionally disclosing false information or concealing information in securities activities," during the investigation, in addition to individuals who assisted Trinh Van Quyet in committing the crime, the Ministry of Public Security's Investigation Police Agency investigated and clarified the violations of individuals belonging to the competent state management agency approving the registration of public companies, securities depository and stock listing, initiated additional criminal proceedings, prosecuted the accused for the crimes of "Abusing position and power while performing official duties" and "Intentionally disclosing false information or concealing information in securities activities" as prescribed in Articles 356 and 209 of the 2015 Penal Code.

To date, the Ministry of Public Security's Investigation Police Agency has prosecuted 51 defendants, including: 21 defendants prosecuted for the crime of "Stock market manipulation," stipulated in Clause 2, Article 211 of the 2015 Penal Code; 31 defendants prosecuted for the crime of "Fraudulent appropriation of property," stipulated in Clause 4, Article 174 of the 2015 Penal Code; 4 defendants from the Ho Chi Minh City Stock Exchange prosecuted for the crime of "Abusing position and power while performing official duties," stipulated in Clause 3, Article 356 of the 2015 Penal Code.

Of these, 8 defendants were prosecuted for two crimes: "Stock market manipulation" and "Fraudulent appropriation of property," as stipulated in Clause 2, Article 211 and Clause 4, Article 174 of the 2015 Penal Code.

Three defendants from the Department of Public Company Supervision under the State Securities Commission and the Vietnam Securities Depository Center were prosecuted for the crime of "Intentionally disclosing false information or concealing information in securities activities," as prescribed in Clause 2, Article 209 of the 2015 Penal Code.