The Investigative Police Agency of the Ministry of Public Security has forwarded the entire case file to the Supreme People's Procuracy, recommending the prosecution of 51 suspects in accordance with the provisions outlined in Clause 2, Article 211, Clause 4, Article 174, Clause 3, Article 356 and Clause 2, Article 209 of the 2015 Penal Code.
On February 24, the Investigative Police Agency of the Ministry of Public Security issued supplementary investigation conclusions regarding criminal offenses of "Market manipulation," "Fraudulent appropriation of property," "Abuse of power or position while performing official duties," and "Intentional dissemination of false information or concealment of information in securities activities."
These offenses occurred at FLC Group Joint Stock Company (FLC Group), BOS Securities Joint Stock Company, Faros Construction Joint Stock Company, related companies within the ecosystem of FLC Group, the Ho Chi Minh City Stock Exchange, the Supervision Department of Public Companies under the State Securities Commission, and the Vietnam Securities Depository, made by Trinh Van Quyet, former Chairman of the Board of Directors of FLC Group, accomplices, and individuals from State management agencies in the securities sector.
This is the latest development in the case after the return of the case file for supplementary investigation by the Supreme People's Procuracy in early January. The investigation results so far provide sufficient grounds to determine:
Regarding the act of "Market manipulation": From May 26, 2017, to January 10, 2022, Trinh Van Quyet directed Trinh Thi Minh Hue (Quyet's younger sister) and accomplices to use the identities of employees, relatives, and acquaintances for Hue to prepare documents and procedures to establish companies and open securities accounts and bank accounts.
Hue used these accounts to manage and conduct market manipulation activities involving five stocks, namely AMD, HAI, GAB, FLC, and ART. Following Quyet's instructions, Trinh Thi Minh Hue sold shares on the market for illicit gains totaling over VND723 billion when the stock prices increased.
For the act of "Fraudulent appropriation of property," the investigative agency determined that from 2014 to September 2016, Trinh Van Quyet directed individuals who were leaders or employees of Faros Company, as well as companies within FLC Group, and relatives and acquaintances acting as shareholders to carry out schemes involving falsifying and signing capital contribution documents, falsely increasing the contributed capital by over VND3.1 trillion to Faros Company, thereby increasing the company's charter capital from VND1.5 billion to VND4.3 trillion.
Subsequently, they created documents and requested State management agencies in the securities sector to approve the registration of the company as a public company, the registration of securities depository, and the listing of 430 million shares formed from the falsified capital contribution of Faros Company at the Ho Chi Minh City Stock Exchange.
After Faros Company's shares were listed on the stock exchange, from September 2016 to March 2022 (the time of indictment and detention), Trinh Van Quyet and his accomplices sold over 391 million shares formed from the falsified capital contribution held in Faros Company, resulting in proceeds of VND4.8 trillion, of which over VND3.6 trillion was misappropriated from investors in the stock market.
Regarding the offenses of "Abuse of power or position while performing official duties" and "Intentional dissemination of false information or concealment of information in securities activities": During the investigation, besides individuals who aided Trinh Van Quyet in committing criminal acts, the Investigative Police Agency also probed and clarified the wrongdoings of individuals within State management agencies authorized to approve the registration of public companies, securities depository, and stock listing.
Subsequently, supplementary criminal investigations were conducted, and individuals were indicted for the offenses of "Abuse of power or position while performing official duties" and "Intentional dissemination of false information or concealment of information in securities activities."
