FLC Chairman Trinh Van Quyet arrested for stock market manipulation

Trinh Van Quyet, Chairman of the FLC Group Joint Stock Company (Photo: VNA)

Hanoi – The Ministry of Public Security's Investigation Police Agency on March 29 decided to launch criminal proceedings against and arrest Trinh Van Quyet, Chairman of the FLC Group Joint Stock Company, pending investigations into suspicion of stock market manipulation.

Lieut. Gen. To An Xo, Chief of the Office and Spokesman of the Ministry of Public Security, said that the arrest is to investigate Quyet and concerned individuals in FLC, BOS Securities JSC and related companies on the act of "manipulating the stock market" and "concealing information in securities activities" on January 10, 2022, causing serious damage to investors and affecting operations of Vietnam's stock market.

According to the investigation agency, Quyet would be charged with “manipulating the stock market" in line with Article 211 of the Penal Code.

The agency also searched residences and workplaces of the concerned individuals at 21 venues.

On January 10, Quyet sold 74.8 million FLC shares without any reports and notifications in advance as stipulated in regulations, triggering public concern and pushing the stock market in chaos.

The State Securities Commission of Vietnam (SSC) immediately decided to block Quyet’s securities accounts to prevent him from committing other illegal acts.

The SSC also asked the Ho Chi Minh City Stock Exchange (HoSE) to cancel the transactions of the 74.8 million FLC shares. Many investors were refunded.

On January 18, the commission issued another decision under which Quyet was fined 1.5 billion VND (65,600 USD), the heaviest penalty in line with regulations, and banned him from stock trading activities for five months.

It was the second time that Quyet was fined by the SSC for the same offence. In 2017, he was fined 65 million VND for selling 57 million FLC shares without proper notice.