Mr. Trinh Van Quyet – Chairman of FLC, which penalty frame does he face?
As reported, the afternoon of March 29, The investigative police agency of the Ministry of Public Security has prosecuted, Mr. Trinh Van Quyet detained (Chairman of the Board of Directors of FLC Group Joint Stock Company) on the charge of stock market manipulation.
During the investigation, the Investigation Police Agency of the Ministry of Public Security initially verified the actions of FLC Chairman Trinh Van Quyet and related subjects that affected the stock market.
Specifically, from January 10, Mr. Trinh Van Quyet suddenly registered to sell 175 million FLC shares from the date, the expected transaction value at par value is VND 1,750 billion. Expected trading time from January 10 to January 17. The purpose stated by Mr. Quyet is to structure assets. Method of transaction agreement or order matching. Before the transaction, Mr. Quyet held 215 million FLC shares, equivalent to 30.34% of the company’s charter capital.
Mr. Trinh Van Quyet.
On January 11, the Ho Chi Minh City Stock Exchange. Ho Chi Minh City Stock Exchange (HoSE) announced to cancel the sale of 74.8 million FLC shares on January 10 under the direction of the State Securities Commission. The reason for the cancellation of the transaction was because the Chairman of the Board of Directors of FLC Group Trinh Van Quyet did not report or disclose information before the transaction.
On January 18, the State Securities Commission fined Mr. Quyet 1.5 billion dong and suspended his securities trading activities for 5 months.
According to Lieutenant General To An Xo, Chief of the Office of the Ministry of Public Security, the above behavior “caused serious damage to investors and affected the operation of the Vietnamese stock market”.
Judging from a legal perspective, lawyer Dang Van Cuong – Hanoi Bar Association said that in order to avoid someone manipulating the stock market, the law has regulations to manage this market. , creating transparency, fairness and equality in the market.
Doctor, lawyer Dang Van Cuong
Therefore, illegal acts in the stock market can negatively affect the market, infringe on the legitimate rights and interests of investors, and affect state management.
In case the act of manipulating the securities market to gain illicit profits of 500,000,000 VND or more or cause damage to investors from 1,000,000,000 VND or more, the violator will be examined for penal liability according to regulations. Article 211 of the penal code.
Specifically, crimes and penalties are prescribed by the 2015 Penal Code, amended and supplemented in 2017 as follows:
Article 211. Crime of manipulating the stock market
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.
Thus, in order to charge Mr. Trinh Van Quyet with the crime of manipulating the stock market, the investigating agency must collect documents and evidence to prove that Mr. Quyet has committed one of the following illegal acts: which causes damage to others in the amount of 1,000,000,000 VND or more or illegally gains 500,000,000 VND or more.
One of the grounds for the charge is to determine the amount of illicit gain or the amount of damage to the victims.
Therefore, the Doctor of Law said that in case the authorities determine that there is a violation of the law to the point of having to be criminally handled and the amount of illicit profit is from VND 1,500,000,000 or more or causes damage from VND 3,000,000,000 or more, the violator will face the highest penalty frame for this crime which will be a prison term of between 02 years and 07 years.
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.
This crime can also be applied to commercial legal entities. In case a commercial legal entity commits a crime of manipulating the stock market, the highest penalty is a fine of up to VND 10,000,000,000. The offending enterprise is also suspended from operation for a definite time or permanently. In addition, businesses may also be subject to additional penalties such as fines.
at Blogtuan.info – Source: Afamily.vn – Read the original article here
