Prosecution of former FLC Group Chairman Trinh Van Quyet and 50 other defendants

The Supreme People's Procuracy has just issued an indictment to prosecute 51 defendants in a criminal case related to FLC Group Joint Stock Company.

Among them, the Supreme People's Procuracy prosecuted defendant Trinh Van Quyet (former Chairman of the Board of Directors of FLC Group) and his two sisters Trinh Thi Thuy Nga and Trinh Thi Minh Hue for the crimes of "manipulating the stock market" and "fraudulent appropriation of property."

With the above two crimes, the Procuracy proposed to prosecute 41 defendants who are employees of FLC, valuation and auditing units...

Three defendants from the State Securities Commission's Department of Public Company Supervision and the Vietnam Securities Depository Center were prosecuted for "intentionally disclosing false information or concealing information in securities activities."

According to the indictment, the Supreme People's Procuracy prosecuted the defendants in the case of "manipulating the stock market," "fraudulent appropriation of property," "abusing positions and powers while performing official duties" and "intentionally disclosing false information or concealing information in securities activities" occurring at FLC Group Joint Stock Company, BOS Securities Joint Stock Company, Faros Construction Joint Stock Company, related companies in the ecosystem of FLC Group Joint Stock Company, Ho Chi Minh City Stock Exchange, the Department of Supervision of Public Companies under the State Securities Commission and the Vietnam Securities Depository Center.

Regarding the act of "manipulating the stock market", from 2017-2022, Trinh Van Quyet directed his two younger sisters, Trinh Thi Minh Hue, Trinh Thi Thuy Nga, and many subordinates to use the names of employees, relatives, and family members to create documents and procedures to establish a company, open securities and bank accounts to manipulate the stock market with stock codes AMD, HAI, GAB, FLC, ART.

The indictment alleges that the defendants used 190 accounts to manipulate the stock market by continuously buying and selling the same type of securities; buying and selling in large volumes to influence the market at the opening and closing times of trading; placing orders to buy and sell stocks and then canceling the orders.

The above manipulations are accused of creating fake supply and demand and inflating prices for 5 stocks in the FLC group.

Typically, code HAI pushed the price from 3,700 VND/share to 22,500 VND/share before dumping, illegally profiting 238 billion VND.

Or with the stock code FLC, the prosecution agency determined that the price was "inflated" from 3,050 VND to more than 21,000 VND/share, illegally profiting 397 billion VND.

In total, through manipulating 5 stock codes, Trinh Van Quyet and his accomplices caused losses of 723 billion VND to investors.

In addition to manipulating 5 stock codes, the indictment determined that Trinh Van Quyet had inflated the charter capital of FLC Faros Construction Joint Stock Company to list the stock code ROS on the stock exchange, collecting money from investors.

Specifically, Faros Company was established in 2011 with an initial charter capital of 1.5 billion VND. During the period 2014-2016, Trinh Van Quyet completed procedures to increase the charter capital of this enterprise from 1,197 billion VND to 4,300 billion VND, equivalent to 430 million shares.

When FLC Faros listed 430 million shares with the code ROS on the stock exchange, Trinh Van Quyet directed the sale, appropriating 3,600 billion VND from investors.

This fraudulent act of inflating charter capital, then listing and selling shares to collect money was determined by the Procuracy to be "fraudulent appropriation of property".