SSC slaps record fine on traders

The big fine was imposed on four investors who had distorted An Phat Plastic and Green Environment JSC (AAA) stock in late 2010. The AAA case was one of the most outstanding manipulation cases in the local securities market last year.

The four traders were Nguyen Hong Quang, Tran Nghia Binh, Pham Van Xuan and Nguyen Thi Minh Hai. Each was imposed a fine of VND300 million ($14,490).

According to the SSC’s inspecting conclusion, Quang and Binh used 22 trading accounts in five brokerages, Xuan used three accounts in one brokerage and Hai used four accounts in one brokerage to continuously change AAA shares at large volumes from August 13 to October 1 last year, to drive up the share price.

Within less than one month from August 13, the share sharply soared more than two-fold from VND43,700 and peaking at VND91,600 on September 16. AAA immediately fell to below its initial price in early October.

The suspected manipulation had stirred the local securities market at that time, with market participants angrily calling for SSC to inspect the case. There were also continuing rumours about the huge losses of brokerage firms which allowed AAA stock manipulators to use great leverage to trade the share.

SSC, however, shared little information about its inspection, even sparking concerns among investors that the agency had not enough authority to bring the case to light.

In December 2010, the watchdog just imposed small fines of VND80 million ($3,700) and VND60 million ($2,900) on Tam Son Investment JSC and FC Investment Co, respectively for not disclosing information on AAA share transactions from August to October.

The watchdog cooperated with Ministry of Public Security of Vietnam’s economic police to bring out the verdicts.