ACB swindler Kien faces life in prison

The main players in a major financial scandal involving the Asia Commercial Bank face severe charges Photo: Le Toan

The bank’s (ACB) co-founder and former deputy chairman Nguyen Duc Kien was charged with committing illegal business activities, intentionally violating state regulations on economic management with serious consequences, fraud, and tax evasion  and faces a life sentence.

ACB’s former deputy chairmen Le Vu Ky, Pham Trung Cang, and Trinh Kim Quang as well as former general director Ly Xuan Hai and board member Huynh Quang Tuan were all charged with intentionally violating state regulations on economic management with serious consequences.

ACB Hanoi Investment Joint Stock Company’s (ACBI) former director Tran Ngoc Thanh and ACBI’s chief accountant Nguyen Thi Hai Yen face a lesser charge of fraud.

Total losses to the state budget, with Kien fingered as the instigator, were reported to have reached nearly VND1.7 trillion ($81 million).

According to indictments, between May 2007 and August 2012 Kien used six of his own companies to conduct financial and gold trading without the proper licenses valued at more than VND21 trillion ($1 billion).

The companies include Thien Nam Production and Import-Export JSC, B&B Trade and Investment JSC, Asia Financial Group JSC, Asia Commercial Bank (ACB) Hanoi Investment JSC, Asia Hanoi Investment Financial JSC, and Asia Investment JSC.

Kien’s financial manoeuvrings included pouring VND1.28 trillion ($61 million) from B&B into Asia Financial Group in September and October 2009 and thereafter, to replenish B&B’s resources, selling 10 million convertible bonds valued at VND1 trillion ($47.6 million) to ACB.

Kien then used this $47.6 million to buy stakes in numerous firms, such as using VND324 billion ($15.4 million) to buy into Vietinbank and VND426 billion for a position in Hoa Phat-Asia Real Estate JSC.

He also transferred part of the money to the aforementioned six firms to make financial investments such as B&B using VND2,348 billion ($112 million) to buy stocks and gold.

Kien also used his influence in Asia Financial Group, where he acted as chairman and general director, in 2007 when the company used its entire chartered capital of VND3.2 trillion ($152 million) to buy ACB’s convertible bonds.

Later in March 2008, the company sold VND400 billion ($19 million) of the bonds to Southern Bank and put the money back into companies under his management.

Kien also used over VND4 trillion ($190 million) to buy ACB’s convertible bonds and invested in other companies.

Late last month Huynh Thi Huyen Nhu, a former Vietinbank employee, was sentenced to life in prison for falsifying documents and seals and appropriating nearly VND4 trillion ($190.47 million) from 15 victims including three banks, nine companies and three individuals.