Mr. Trinh Van Quyet inflated FLC Faros' charter capital from 1.5 billion to... 4,300 billion.

Mr. Trinh Van Quyet was temporarily detained by the investigation agency for stock market manipulation - Photo: BN

Fraudulent appropriation of property

On August 25, the Ministry of Public Security's Investigation Police Agency (C01) issued a decision to additionally prosecute Mr. Trinh Van Quyet, former Chairman of FLC Group, to investigate the crime of fraud and property appropriation.

The investigation agency also initiated additional charges against Ms. Huong Tran Kieu Dung, former Chairwoman of the Board of Directors of BOS Securities JSC and Permanent Vice Chairwoman of FLC Group JSC.

Mr. Quyet's two younger sisters were also additionally prosecuted for the same crime: Trinh Thi Thuy Nga, former member of the Board of Directors and Deputy General Director of BOS Securities Joint Stock Company and Trinh Thi Minh Hue, accountant in the accounting department, FLC Group Joint Stock Company.

The above procedural decisions have been approved by the prosecutor.

This afternoon, August 25, the investigation agency served additional prosecution decisions against Mr. Quyet and the defendants.

According to the investigation agency, former FLC Chairman Trinh Van Quyet and the defendants had acted to inflate the capital of FLC Faros Construction Joint Stock Company.

According to the investigation agency, from 2014 to 2016, the defendant Quyet carried out procedures to increase the charter capital from 1.5 billion VND to 4,300 billion VND, equivalent to 430 million shares of FLC Faros Construction Joint Stock Company. When this company listed 430 million shares with the code ROS on the stock exchange, the former Chairman of FLC sold and appropriated the investors' money.

As of February 24, 2021, defendant Trinh Van Quyet directed Trinh Thi Minh Hue to sell all ROS shares under his name and the names of 5 other individuals, earning more than 6,400 billion VND. The former Chairman of FLC withdrew cash from the sale of shares to appropriate.

Previously, on March 29, 2022, the Ministry of Public Security's Investigation Police Agency issued a decision to prosecute the case and prosecute Mr. Trinh Van Quyet, Chairman of the Board of Directors of FLC Group Joint Stock Company, to investigate the crime of stock market manipulation.

The investigation agency has applied measures to arrest the suspect for temporary detention, and at the same time issued a search warrant for the residence and workplace of FLC Chairman Trinh Van Quyet to serve the investigation.

Mr. Quyet's two younger sisters were also temporarily detained by C01 to investigate the same crime.

Investigation agency searched FLC Group headquarters on the evening of March 29 - Photo: HA TUAN

Stock price inflation

Initial investigation results have clarified many violations of Mr. Quyet related to "inflating" stock prices with the aim of illegally profiting hundreds of billions of dong.

Defendant Trinh Van Quyet's illegal acts of stock market manipulation were determined to have taken place from early December 2021 until the trading session on January 10, 2022 - the session in which the FLC Chairman illegally sold 74.8 million shares.

Accordingly, Mr. Quyet drew up a rather sophisticated "scenario", directing many people to participate in "inflating" the price of the shares of his own corporation to an extremely high level to "lure" many investors, then "covered up" and secretly sold the shares he bought cheaply with the purpose of making illegal profits.

Defendant Trinh Van Quyet directed many family members and some others to manage employees of BOS Securities Joint Stock Company and its subsidiaries, using about 20 securities accounts of 11 organizations to carry out "price manipulation".

These individuals colluded with each other to continuously buy and sell FLC securities at high frequency to create fake supply and demand to push prices up.

The act of creating fake supply and demand by Trinh Van Quyet's group pushed the price of FLC shares from more than 14,000 VND/share on December 1, 2021 to continuously increase, even reaching the "ceiling" for many sessions and the highest "ceiling" increase was 24,000 VND/share. The price of FLC shares was "magically" increased by more than 64% by the group of defendant Quyet.

After the FLC stock price was inflated to an astronomical level, the Chairman of the group used a "basket-covering" tactic, instructing his relatives to sell 175 million shares. The total number of FLC shares sold by Mr. Quyet's group that were matched was 74.8 million, with an average price of VND22,500/share. All of these shares were sold "underground", without being announced before the transaction.

The total amount of money that the defendant Quyet collected after illegally selling shares was nearly 1,700 billion VND, with the purpose of illegally profiting more than 530 billion VND. However, immediately after the illegal selling of shares, the State Securities Commission canceled the transaction of all shares sold by Mr. Quyet, and the investors who bought these shares were fortunate to receive a refund.

To date, C01 has prosecuted and temporarily detained 5 people in this case, including Mr. Trinh Van Quyet; Trinh Thi Minh Hue, former general accountant of FLC Group Joint Stock Company; Huong Tran Kieu Dung, former Chairman of the Board of Directors of BOS Securities Joint Stock Company and Permanent Vice Chairman of FLC Group Joint Stock Company; Trinh Thi Thuy Nga, former member of FLC Group Joint Stock Company.Board of Directorsand Deputy General Director and Nguyen Quynh Anh, former General Director of BOS Securities Joint Stock Company.

The investigation agency is continuing to strengthen and clarify the wrongdoings of other related people.

According to Tuoi Tre