Prison sentence reduced by 14 years for former FLC chairman Trinh Van Quyet

Trinh Van Quyet, former chairman of FLC Group, has seen his prison sentence decreased from 21 years to 7 years for "fraudulent appropriation of property", while receiving a fine of VND4 billion ($153,000) for "stock market manipulation".

The High People's Court in Hanoi on Thursday announced the appeal verdict related to the case that occurred at FLC Group, once a major property developer, and related units.

Defendant Trinh Van Quyet, former chairman of FLC Group, had many circumstances that reduced his sentence, the court stated.

In particular, defendant Quyet and his two sisters, Trinh Thi Minh Hue and Trinh Thi Thuy Nga, handed over the entire amount of money embezzled, a total of VND2,467 billion ($94.39 million), to the state and paid a surplus of over VND46 billion ($1.76 million).

Other conditions for the sentence reduction were his family's contribution to the country's revolution and Quyet being treated for a serious illness with a very high prognosis of death.

The two sisters of Quyet also received reduced sentences. For the crime of fraud and appropriation of property, the court of appeal reduced the sentence for Hue from 14 years to 4.5 years.

Nga's eight-year sentence was decreased to the period equivalent to the time she was temporarily detained, so she was released in court.

For the crime of "stock market manipulation", Hue was fined VND3.5 billion, while the figure for Nga was VND3 billion.

Many other defendants also had their sentences reduced, even though some did not appeal.

The Hanoi People’s Court on August 5, 2024 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.

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.

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

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