Former FLC chairman investigated for fraud

By Pham Du   August 25, 2022 | 06:03 am PT
Former FLC chairman investigated for fraud
Former FLC chairman Trinh Van Quyet. Photo by VnExpress/Ngoc Thanh
Former FLC group chairman Trinh Van Quyet and two of his sisters are being investigated for fraud following their earlier arrests for alleged stock market manipulation.

Public Security Ministry police said Thursday that Quyet and his sisters Trinh Thi Thuy Nga and Trinh Thi Minh Hue are being investigated for obtaining property by fraud. All three were arrested on allegations of stock market manipulation in March and April.

Huong Tran Kieu Dung, former vice chairwoman of the real estate group, arrested in April on allegations of stock market manipulation, is also being investigated for obtaining property by fraud, the police said.

They called for investors for money to raise capital, but actually used it to line their pockets.

Investigation found that from 2014 to 2016, he had performed procedures to raise the capital of FLC Faros Construction (ROS) from VND1.5 billion to VND4.3 trillion, issuing 430 million shares on the stock market.

He the instructed Hue to sell the shares and pocket more than VND6.4 trillion ($273.7 million) by February 2021.

Regarding his stock market manipulation allegations, investigation revealed that from September 1, 2016 to January 10, 2022, Quyet instructed Hue and his employees in the accounting department to let his acquaintances form 20 companies.

They borrowed and used personal ID cards of 26 people to create 450 stock market accounts under Hue’s name, as well as the names of people and entities in 41 other companies.

Authorities said their action was aimed at manipulating the stock market through buying and selling large numbers of stocks, as well as canceling orders to create a false sense of demand. Through his actions, Quyet has unlawfully gained resources and harmed investors, authorities said.

Quyet unlawfully gained over VND530 billion ($22.6 million) through the manipulation, authorities said.

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