How can Mr. Trinh Van Quyet be imprisoned?
On the afternoon of March 29, the Investigative Police Agency of the Ministry of Public Security (C01) conducted an investigation and verification against Trinh Van Quyet, Chairman of the Board of Directors of FLC Group Joint Stock Company, and individuals of the Joint Stock Company. FLC Group, BOS Securities Joint Stock Company and related companies about the act of “Manipulating the stock market”, “Concealing information in securities activities” occurred on January 10, 2022, causing serious damage to investors, affecting the operation of Vietnam’s stock market.
The above behavior of Trinh Van Quyet, Chairman of the Board of Directors of FLC Group Joint Stock Company, has enough elements to constitute the crime of “manipulating the stock market”, specified in Article 211 of the Penal Code. Initially, on March 29, 2022, the Police Investigation Agency of the Ministry of Public Security issued the Decision to prosecute the criminal case No. 06/QD-VPCQCSĐT, the Decisions to prosecute the accused, and the arrest warrant for the accused. with Trinh Van Quyet. At the same time, organizing search of residences and workplaces at 21 locations for related subjects.
Decisions and procedural orders of the Investigative Police Agency of the Ministry of Public Security have been approved by the Supreme People’s Procuracy (Case 3) in accordance with the law.
So, how are the acts of “Manipulating the stock market”, “Concealing information in securities activities” punished according to the law?
Manipulating the stock market
According to Clause 2, Article 3 of Decree 156/2020/ND-CP, a securities market manipulation transaction includes one, some or all of the following acts:
– Using one or more trading accounts of their own or of others or colluding to continuously buy and sell securities in order to create artificial supply and demand;
– Placing buy and sell orders of the same securities on the same trading day or colluding with each other to buy and sell securities without actual transfer of ownership or ownership rights only circulating between members in the transaction. groups to create securities prices, artificial supply and demand;
– Continuously buying or selling securities with a dominant volume at the opening or closing of the market in order to create a new closing or opening price for that type of security in the market;
– Trading securities in the form of collusion, enticing other people to continuously place buy and sell orders for securities, greatly affecting supply and demand and stock prices, manipulating securities prices;
– Giving opinions directly or indirectly through the mass media about a type of security or the issuer of a security in order to influence the price of that type of security after the transaction has been made. trade and hold positions for such securities;
– Using methods or performing other trading acts or combining spreading false rumors, providing false information to the public to create artificial supply and demand, and manipulate securities prices.
In the 2015 Penal Code, securities-related crimes have been much more specific, specifically in Article 211, which provides for the crime of manipulating the securities market as follows:
1. Those who commit one of the following acts to gain illicit profits from VND 500,000,000 to under VND 1,500,000,000 or cause damage to investors from VND 1,000,000,000 to under VND 3,000,000,000, shall be a fine of from VND 500,000,000 to VND 2,000,000,000 or imprisonment from 06 months to 03 years:
a) Using one or more trading accounts of their own or of others or colluding with each other to continuously buy and sell securities in order to create artificial supply and demand;
b) Colluding with other people to place orders to buy and sell the same type of securities on the same trading day or colluding with each other to trade securities without leading to the actual transfer of ownership or the ownership to only rotate. between group members to create securities prices, artificial supply and demand;
c) Continuously buying or selling securities with a dominant volume at the time of opening or closing the market in order to create a new closing or opening price for that type of security on the market;
d) Trading securities in the form of colluding, enticing other people to continuously place buy and sell orders for securities, greatly affecting supply and demand and securities prices, manipulating securities prices;
dd) Giving opinions directly or indirectly through the mass media about a type of security, about the securities issuer in order to influence the price of that type of security after making the decision. trading and holding positions in such securities;
e) Using methods or performing other trading behaviors to create artificial supply and demand, and manipulate securities prices.
2. Committing the crime in one of the following circumstances, the offenders shall be subject to a fine of between VND 2,000,000,000 and 4,000,000,000 or a prison term of between 02 and 07 years:
a) Organized;
b) Gaining illicit profits of VND 1,500,000,000 or more;
c) Causing damage to the investor 3,000,000,000 VND or more;
d) Dangerous recidivism.
3. The offenders may also be subject to a fine of between VND 50,000,000 and 250,000,000, a ban from holding certain posts, practicing certain professions or doing certain jobs for one to five years.
4. A commercial legal entity that commits an offense specified in this Article shall be fined as follows:
a) Committing the crime in the cases specified in Clause 1 of this Article, the offenders shall be subject to a fine of between VND 2,000,000,000 and 5,000,000,000;
b) Committing the crime in the cases specified in Clause 2 of this Article, the offenders shall be subject to a fine of between VND 5,000,000,000 and 10,000,000,000;
c) Committing the crime in the circumstances specified in Article 79 of this Code, the operation shall be permanently suspended;
d) The commercial legal entity may also be subject to a fine of from VND 500,000,000 to VND 2,000,000,000, a ban from doing business, from operating in certain fields from 01 to 03 years, or from raising capital from 01 year. five to three years.
Hiding information in securities activities
According to Article 209 of the 2017 Penal Code, the crime of intentionally disclosing false information or concealing information in securities activities is as follows;
1. Those who intentionally disclose false information or conceal information in activities of offering, listing, trading, securities business activities, market organization, registration, depository, clearing or securities settlement in one of the following cases, shall be subject to a fine of between VND 100,000,000 and 500,000,000, a non-custodial reform for up to 2 years or a prison term of between 3 months and 2 years:
a) Causing damage to investors from 1,000,000,000 VND to under 3,000,000,000 VND;
b) Gaining illicit profits from VND 500,000,000 to under VND 1,000,000,000;
c) Has been administratively sanctioned for publishing false information or has been convicted for this crime, has not yet had his criminal record cleared but continues to commit it.
2. Committing the crime in one of the following circumstances, the offenders shall be subject to a fine of between VND 500,000,000 and 2,000,000,000 or a prison term of between 01 and 05 years:
a) Organized;
b) Gaining illegal profits of 1,000,000,000 VND or more;
c) Causing damage to the investor 3,000,000,000 VND or more;
d) Dangerous recidivism.
3. The offenders may also be subject to a fine of between VND 50,000,000 and 200,000,000, a ban from holding certain posts, practicing certain professions or doing certain jobs for one to five years.
4. A commercial legal entity that commits an offense specified in this Article shall be fined as follows:
a) Committing the crime in the cases specified in Clause 1 of this Article, the offenders shall be subject to a fine of between VND 500,000,000 and 2,000,000,000;
b) Committing the crime in the cases specified in Clause 2 of this Article, the offenders shall be subject to a fine of between VND 2,000,000,000 and 5,000,000,000
c) A commercial legal entity may also be banned from doing business, from operating in certain fields or from raising capital for one to three years.
Thus, for the crime of intentionally disclosing false information or concealing information in securities activities, the maximum prison sentence is up to 5 years.
According to the Law and readers
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