Trinh Van Quyet's trick of inflating capital contribution by nearly 3,000 times

According to the decision of the Hanoi People's Court, former Chairman of the Board of Directors of FLC Group Trinh Van Quyet and 49 other defendants will be brought to trial on July 22. In relation to the case, Mr. Trinh Van Quyet was prosecuted for the crimes of "Fraudulent appropriation of property"and "Stock market manipulation".

In sin "Fraudulent appropriation of property", the accusation is that defendant Trinh Van Quyet was the mastermind, decided and directed the entire use of Faros Company as a tool and means to direct Mr. Doan Van Phuong, General Director of FLC and Mr. Quyet's sister, Ms. Trinh Thi Minh Hue (general accountant of FLC Group Joint Stock Company) and accomplices to carry out the act of inflating the owner's equity from 1.5 billion VND to 4,300 billion VND.

Mr. Trinh Van Quyet is also the person who directed and led Faros Company to carry out procedures for the State Securities Commission to approve this company as a public company, listing ROS shares on the HOSE.

In addition, Mr. Quyet also directed the buying and selling of stocks with false values ​​to appropriate more than VND 3,621 billion from investors for personal use.

Defendant Trinh Van Quyet confessed to the crime as stated and voluntarily paid more than 189 billion VND to compensate for the consequences.

Regarding the identification of victims, the investigation agency has proven that 30,403 investors bought 391,155,480 ROS shares (initial sale) from Mr. Trinh Van Quyet traded on the HOSE floor, with a total value of more than 4,818 billion VND.

Meanwhile, Faros Company only has real equity of more than 1,197 billion VND and fake equity of more than 3,102 billion VND. Thereby, defendant Trinh Van Quyet has appropriated 3,621 billion VND from the 30,403 investors mentioned above.

These individuals spent money to buy ROS shares on the stock exchange without knowing that the shares had been inflated in value by Mr. Quyet and his accomplices using fraudulent tricks, so they were identified as victims of the case.

The investigation agency has applied investigation delegation measures; at the same time, the investigation agency of the Ministry of Public Security and the Supreme People's Procuracy have repeatedly announced on the mass media, requesting the victims who bought ROS shares on the stock exchange to declare, conduct verification, and take statements for consideration and settlement in the case.

However, the investigation results so far have determined that 133/30,403 victims are owning 627,090 initial shares (formed from fake capital contributions) with a total purchase value of more than 2.2 billion VND.

According to the investigation agency, currently 95/133 victims have requested compensation for damages because they own 381,670 shares initially formed from fake capital contributions with a purchase value of more than 1.3 billion VND.

In the decision to bring the case to trial of the Hanoi People's Court signed by Judge Vu Quang Huy, the court determined that the people with related rights and obligations are 63,092 investors holding shares of FLC Faros Construction Joint Stock Company (stock code ROS).

More than 63,000 people with related rights and obligations and other people with related rights and obligations were summoned to the trial by the court.

The number of victims in this case was identified as 30,403 investors who bought shares (initial sale) of FLC Faros Construction Joint Stock Company (stock code ROS).

For the crime "Stock market manipulation"For which Mr. Trinh Van Quyet was accused, the indictment indicated that Mr. Quyet and his accomplices manipulated the prices of 5 stock codes AMD, ART, HAI, GAB, FLC; illegally profiting more than 684 billion VND.

Regarding the act of stock market manipulation, the investigation agency said that there was no basis to determine the losses of investors.