Tycoon, ex minister indicted in high-profile case

The total amount of illegal trading in the case amounted to hundreds of millions of dollars.

The multi-millionaire banker Nguyen Duc Kien, once one of the richest men in Vietnam and former deputy chairman of the Board of Management and ex-deputy chairman of the Founding Board of ACB made international news when he was arrested in August last year.

Kien has now been charged with illegal trading, swindling to appropriate assets, intentionally acting against State’s economic management regulations and causing serious consequences, and tax evasion.

The Procuracy also indicted Tran Ngoc Thanh, CEO of ACB Hanoi Investment Joint Stock Company, and Nguyen Thi Hai Yen, chief accountant of this company, on charges of swindling to appropriate assets.

Meanwhile, Tran Xuan Gia, former chairman of the Board of Management of ACB, Le Vu Ky, Trinh Kim Quang, ex-former deputy chairmen of the Board, Le Xuan Hai, ex-CEO of ACB have been charged with intentionally acting against State’s economic management regulations and causing serious consequences. Gia is also the former Minister of Planning and Investment.

Illegal financial trade

Kien was the chairman of the Investment Board of ACB from 2003 to August 2012 and was deputy chairman of the Management Board of the bank from 1994 to 2008.

In 2007 Kien suggested that the Management Board of ACB set up the Founding Board of ACB and he took the post of deputy chairman of the board when it was established.

With such title, which was not recognized by the State Bank of Vietnam, and the other posts, Kien was the representative of the group of shareholders holding 9.03 percent of the bank’s charter capital, and played important role in operating and managing the bank.

Kien also set up and was the chairmen of management boards of six companies: Thien Nam Production Development and Import-Export JSC, B&B Trading and Investment JSC (B&B), Asia Financial Group Co LTd (AFG), Hanoi ACB Investment JSC (ACBI), A Chau Investment JSC (ACI) and Hanoi Asia Financial Investment Co Ltd (ACI-HN).

According to the indictment, except Thien Nam, all the five above-mentioned companies were used by Kien to conduct financial trade transactions totaling nearly VND10 trillion (US$471.7 million), although these company were not licensed to do so.

Under Kien’s orders, ACBI sold VND800 billion ($37.74 million) worth of debentures to ACB. He then used VND700 billion of the amount to acquire 9.67 million shares from 12 individual shareholders at Techcombank. He later lent the remaining amount to ACI for it to buy shares at Eximbank.

ACBI also bought shares at many companies, including Hoa Phat Cement JSC, Bac Qua Trading and Services JSC, Lang Yen Trading JSC, and some others.

Through ACBI, Kien committed illegal trading deals totaling over VND1,433 billion ($67.6 million), the Supreme Prosecutor’s Office said.

At AFG, the total amount of financial trading transactions that were carried out unlawfully under Kien’s orders amounted to VND4,068 billion ($192 million).

Meanwhile, ACI bought 37.5 million shares at Nha Rong Investment Trading JSC and 6.375 million shares at Saigon Goods Services JSC.

Kien also ordered ACI-HN to issue debentures worth VND350 billion and sold them to VietBank. The revenue was transferred to the ACB Securities Co Ltd (ACBS) to acquire nearly 11 million shares at ACB.

ACI-HN also conducted many illegal financial transactions under Kien’s directions.

VND1,407 billion damage

According to the indictment, the ACB Board of Management applied a wrong policy that entrusted employees to make deposits at other banks.

From July 27, 2011 to September 5, 2011, Le Xuan Hai authorized chief accountant Nguyen Van Hoa to entrust 19 employees to make deposits totaling VND719 billion to at Vietinbank.

This move violated Article 106 of the 2010 Law on Credit Organizations.

The entire amount was later appropriated by Huynh Thi Huyen Nhu, former head of Vietinbank’s Dien Bien Phu Transaction Office in Ho Chi Minh City.

In addition, Kien and and Ky also granted credits to Kien’s companies for them to buy shares at ACB. This move caused a loss of VND688 billion, which was the amount that could not be recovered from these companies.

Swindling VND264 billion

When being chairman of the Board of Directors at ACB Investment (ACBI), Kien requested Tran Ngoc Thanh, the firm’s director, and its chief accountant, Nguyen Thi Hai Yen, to falsify documents to sell more than 22 million shares of the bank at Hoa Phat Steel JSC to Hoa Phat Steel One-member Limited Company.

By the deal, Kien and his accomplices appropriated VND264 billion ($12.45 million) paid by the buyer, but in fact, all these shares had been used by ACBI as security at ACB for another deal.

Huge loss in illegal gold trading

Although Thien Nam Production Development and Import-Export JSC was not licensed to trade in gold, Kien ordered the company to conduct illegal gold trading.

Such illicit deals caused a total loss of VND433 billion ($20.42 million).

Also related to gold trading, Kien was charged with evading more than VND25 billion ($1.18 million) in 2009, said the Supreme Prosecutor’s Office.

He also took advantage of the government’s policy to exempt taxpayers from personal income tax for first six months of 2009 and managed to evade corporate tax by transferring the company’s profit into his own personal income.