Former FLC chairman faces securities market manipulation and asset misappropriation charges

Joining Quyet in facing charges are his two sisters, Trinh Thi Thuy Nga and Trinh Thi Minh Hue, along with Huong Tran Kieu Dung, former vice chairman of FLC Group.

Additionally, 48 other individuals are implicated.

Notably, four individuals from the Ho Chi Minh City Stock Exchange are among them: Tran Dac Sinh, former chairman of the board; Le Hai Tra, former CEO, and independent board member; Tram Tuan Vu, former deputy CEO and deputy chairman of the listing council; and Le Thi Tuyet Hang, director of listing management and assessment department, and listing council member.These individuals are charged with "abusing positions and powers while performing official duties".

Three individuals from the State Securities Commission's Public Company Supervision Division, the Vietnam Securities Depository: Le Cong Dien, head of the Public Company Supervision Division under the State Securities Commission; Duong Van Thanh, director general of the Vietnam Securities Depository; and Pham Minh Trung, head of the Securities Registration under the Vietnam Securities Depository, are also charged with "intentionally disclosing false information or concealing information in securities activities."

According to the indictment, from 2017 to 2022, Quyet instructed Hue and several subordinates to use false identities of employees, relatives, and acquaintances to establish companies, open securities accounts, and bank accounts to manipulate the securities market with five stock codes: AMD, HAI, GAB, FLC, and ART.

Quyet's sister used 190 accounts to manipulate the securities market by continuously trading the same stocks, dominating the market with large volumes at the opening and closing of trading sessions, placing buy and sell orders and subsequently cancelling them.

These manipulative actions created artificial supply and demand and inflated prices for five stocks under FLC Group. For instance, with the HAI stock, the defendants pushed the price from $0.15 per share to $0.94 per share before dumping them, illegally profiting $9.92 million, according to the indictment.

With FLC shares, the prosecution identified the defendants "inflating" the price from $0.13 to over $0.88 per share during 2020-2022, illegally profiting $16.54 million.

In total, through the manipulation of five stocks, Quyet and accomplices caused damages of $30.13 million to investors.

On January 10, 2022, despite not complying with regulations, Quyet put up for sale more than 76.7 million FLC shares and matched 74.8 million of them, earning nearly $70.83 million.

However, this action was "whistled down" by the State Securities Commission, and the transaction was cancelled, so investors got their money back.

The second allegation against Quyet focuses on the prosecution's belief that he engaged in capital manipulation of FLC Faros Construction JSC to list ROS shares on the stock exchange and collect money from investors.

Specifically, Faros was established in 2011 with an initial charter capital of $62,500.

From 2014 to 2016, Quyet manipulated procedures to increase the company's charter capital to $179.17 million, equivalent to 430 million shares. When Faros listed 430 million ROS shares on the stock exchange, Quyet directed the sale, misappropriating $150 million from investors.

The act of deceitfully inflating the charter capital then listing and selling shares to collect money was determined by the prosecution as "asset misappropriation".

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