Former FLC chairman investigated for fraudulent appropriation of assets

By Thai Ha
Thu, August 25, 2022 | 10:38 pm GMT+7

Former chairman of FLC Group Trinh Van Quyet and his two sisters are being investigated over alleged fraudulent appropriation of assets on the local bourse.

The Ministry of Public Security’s Police Investigation Agency (C01) announced Thursday a decision to investigate "the act of cheating to appropriate assets" by Quyet and his two sisters Trinh Thi Thuy Nga and Trinh Thi Minh Hue under Article 174 of the Penal Code.

Trinh Van Quyet, former chairman of FLC Group. Photo courtesy of Vietnamnet newspaper.

Trinh Van Quyet, former chairman of FLC Group. Photo courtesy of Vietnamnet newspaper.

The agency also decided to prosecute the trio and Huong Tran Kieu Dung, former acting vice chairman of FLC Group, on the same charges. The four are suspected to have artificially raised the chartered capital of Faros Construction JSC, a subsidiary of property developer FLC Group, and related companies.

The investigative agency alleges that from 2014 to 2016, Quyet appropriated securities investors’ money when carrying out procedures to artificially raise the charter capital of Faros Construction JSC from VND1.5 billion ($64,000) to VND4,300 billion ($183.5 million), equivalent to 430 million ROS shares, and listed them on the stock exchange.

Quyet directed Trinh Thi Minh Hue to sell all ROS shares with him and five others registered as owners to illicitly earn VND6,412 billion ($273.7 million) from the sale by February 24, 2021.

Previously, on March 29, Quyet was arrested on charges of “manipulating” and “concealing information in securities activities”. C01 found that his act caused serious damages to investors, affecting the operation of Vietnam’s stock market.

On January 10, Quyet was discovered to have sold 74.8 million FLC shares without informing the market in advance as required by the law, given his position as the company’s chairman.

The Ho Chi Minh City Stock Exchange (HoSE) on January 11 issued a notice to cancel this transaction, and on January 12 many investors were refunded the money they spent to buy the shares.

Lieutenant General To An Xo, chief of staff and spokesman of the Ministry of Public Security, told a government meeting on June 4 that from September 1, 2018 to January 10, 2019, Quyet directed Trinh Minh Hue to borrow 26 identity cards from individuals, establishing 20 companies and opening 450 trading accounts at 41 securities firms to manipulate the price of six stocks,

“This has taken a particularly large toll on investors. The ministry’s investigative agency has received 557 applications from investors accusing Quyet and his accomplices of manipulating the stock market,” Xo said.

Before Quyet was arrested, FLC Group had been known as one of Vietnam's leading property developers with many projects or investment proposals across the country.

Comments (0)
  • Read More
High-speed train may add 1 ppt to Vietnam’s annual GDP growth: ministry

High-speed train may add 1 ppt to Vietnam’s annual GDP growth: ministry

A future trans-Vietnam high-speed railway is expected to contribute one percentage point to the country’s annual economic growth in the 2025-2037 period, a report has shown.

Economy - Wed, March 27, 2024 | 12:21 pm GMT+7

China’s Hainan Drinda to invest $450 mln in solar cell manufacturing in central Vietnam

China’s Hainan Drinda to invest $450 mln in solar cell manufacturing in central Vietnam

Hainan Drinda New Energy Technology, a Chinese photovoltaic (PV) developer and manufacturer, will invest $450 million in solar cell base production in Vietnam’s central province of Nghe An.

Energy - Wed, March 27, 2024 | 11:46 am GMT+7

State utility EVN suffers huge losses from renewable energy licensing violations

State utility EVN suffers huge losses from renewable energy licensing violations

Violations in granting electricity operation licenses and accepting commercial operation dates for a number of solar power projects have caused damage worth hundreds of billions of VND (VND100 billion = $4.04 million) to state utility Vietnam Electricity (EVN).

Economy - Wed, March 27, 2024 | 11:32 am GMT+7

Golden chance for Vietnam firms to boost links with Australia’s Northern Territory

Golden chance for Vietnam firms to boost links with Australia’s Northern Territory

The time is right for Vietnamese businesses to promote trade and investment cooperation with Australia in general and its Northern Territory in particular.

Industries - Wed, March 27, 2024 | 8:31 am GMT+7

75% of Malaysian exports to EU affected by Carbon Border Adjustment Mechanism

75% of Malaysian exports to EU affected by Carbon Border Adjustment Mechanism

The EU’s Carbon Border Adjustment Mechanism (CBAM) will impact 75% of Malaysia’s exports to the bloc, according to the Securities Commission Malaysia (SC).

Southeast Asia - Tue, March 26, 2024 | 10:13 pm GMT+7

National University of Singapore launches AI Institute

National University of Singapore launches AI Institute

The National University of Singapore (NUS) made debut its Artificial Intelligence (AI) Institute aimed at fostering research and application of this technology in education, healthcare and finance.

Southeast Asia - Tue, March 26, 2024 | 10:11 pm GMT+7

Philippine environmental groups demand strict limits on mining

Philippine environmental groups demand strict limits on mining

As the Philippines works to ramp up mining to meet global demand for metals during the green energy transition, environmental groups in the country are demanding strict limits to protect nature and land.

Southeast Asia - Tue, March 26, 2024 | 10:09 pm GMT+7

CPTPP helps raise Malaysia-Canada bilateral trade by 25%

CPTPP helps raise Malaysia-Canada bilateral trade by 25%

Malaysia has seen a 25% increase in bilateral trade with Canada since 2018, bolstered by the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), which came into force in Malaysia in November 2022.

Southeast Asia - Tue, March 26, 2024 | 10:08 pm GMT+7

VPS, SSI lead stockbrokers in software investment

VPS, SSI lead stockbrokers in software investment

Leading Vietnamese stockbrokers VPS Securities and SSI Securities have made the strongest investments in software among brokerage houses in the country.

Finance - Tue, March 26, 2024 | 10:03 pm GMT+7

Education major Egroup has new executive amid leadership crisis

Education major Egroup has new executive amid leadership crisis

Nguyen Thi Dung, a board member of Egroup Education Group JSC and a senior executive at its subsidiary Egame Investment and Distribution JSC, has taken over the executive role at the two firms from Nguyen Ngoc Thuy, known as “Shark Thuy.”

Companies - Tue, March 26, 2024 | 6:30 pm GMT+7

Vietnamese courier, Singapore realty firm ink sorting center pact

Vietnamese courier, Singapore realty firm ink sorting center pact

Frasers Property Vietnam, subsidiary of Singapore-headquartered Frasers Property, and SPX, a Vietnamese logistics services provider, have agreed to cooperate on setting up an automatic sorting center in Binh Duong province.

Industrial real estate - Tue, March 26, 2024 | 6:09 pm GMT+7

Billionaires to attend central Vietnam investment promotion conference

Billionaires to attend central Vietnam investment promotion conference

The central province of Binh Dinh says well known billionaires are among more than 1,000 delegates set to attend its investment promotion conference later this month.

Investing - Tue, March 26, 2024 | 5:57 pm GMT+7

Chinese electronics materials maker to build $50 mln factory in northern Vietnam

Chinese electronics materials maker to build $50 mln factory in northern Vietnam

Guangdong SQ New Material Co., a Chinese manufacturer of materials used in the electronics industry, is exploring opportunities to build a $50 million plant in Bac Ninh province.

Industries - Tue, March 26, 2024 | 4:09 pm GMT+7

Chinese photovoltaics firm Trina Solar signs $700 mln material supply deal for Vietnam factory

Chinese photovoltaics firm Trina Solar signs $700 mln material supply deal for Vietnam factory

OCI Holdings, a South Korean chemical company, has signed a long-term supply contract worth KRW930 billion ($693.9 million) with China-based photovoltaics (PV) company Trina Solar for the latter’s factory in Vietnam.

Energy - Tue, March 26, 2024 | 3:28 pm GMT+7

Vietnam foreign investors upbeat, minor niggles remain: report

Vietnam foreign investors upbeat, minor niggles remain: report

Foreign investors in Vietnam have better sentiments and are optimistic about the future, according to a report released Tuesday by the Vietnam's Association of Foreign Invested Enterprises (VAFIE).

Economy - Tue, March 26, 2024 | 3:05 pm GMT+7

Vietnam northern province Quang Ninh attracts $600 mln of FDI in Q1

Vietnam northern province Quang Ninh attracts $600 mln of FDI in Q1

Quang Ninh province in northern Vietnam has attracted nearly $600 million in foreign direct investment (FDI) in the first quarter this year, accounting for 20% of its annual target.

Industries - Tue, March 26, 2024 | 1:31 pm GMT+7