Former FLC Group chairman sentenced to 21 years in prison

The Hanoi People’s Court on Monday sentenced former FLC Group chairman Trinh Van Quyet to 18 years behind bars for fraudulent appropriation of property and an extra three years for manipulating the stock market.

The court determined that Quyet was the mastermind in the case of “fraudulent appropriation of assets; stock market manipulation; abuse of positions and power while on duties; intentionally publishing false information or concealing information in securities activities” that occurred at FLC Group, once a major real estate developer.

Trinh Van Quyet "took advantage of legal loopholes and used FLC Faros Construction Joint Stock Company as a tool and the Ho Chi Minh Stock Exchange as a channel to appropriate a particularly large amount of money, more than VND4,300 billion ($171.33 million)," it noted.

Thus, he must receive the heaviest sentence among 50 defendants, the jury concluded after two weeks of trial.

On the same charges, Quyet’s two younger sisters, Trinh Thi Minh Hue, former officer of FLC Group’s accounting division, and Trinh Thi Thuy Nga, deputy general director of BOS Securities Company, were sentenced to 14 years and eight years in prison, respectively.

According to the jury, the former FLC chairman and other defendants manipulated five stock codes, namely AMD, HAI, GAB, FLC and ART, earning illicit profits of more than VND723 billion ($28.81 million).

Quyet also directed the leaders and employees of Faros Company, a unit under FLC Group, and relatives to act as shareholders to make up and sign false documents on capital contributions, artificially raising Faros Company’s charter capital from VND1.5 billion to VND4,300 billion ($170.47 million), equivalent to 430 million shares.

When FLC Faros listed 430 million shares coded ROS on the stock market, Quyet directed the sales of them and appropriated over VND3,600 billion ($142.72 million) from investors.

Quyet is criminally responsible for illicit gains of more than VND4,300 billion ($171.33 million).

The jury said that the violations adversely affected the confidence of investors and the stock market, thus the violators must be strictly handled.

However, Quyet was recognized for his contributions to economic development in a number of localities, creating thousands of jobs for workers.

Trinh Van Quyet told the court that he would use his personal assets worth about VND5,000 billion ($192.22 million) that have been frozen to remedy the consequences.