The whole scene of the underground sale was shaken, causing FLC president Trinh Van Quyet to be arrested: Why is it so bad?
On March 29, the investigative agency of the Ministry of Public Security issued a decision to prosecute the case, prosecute the accused, and arrest Mr. Trinh Van Quyet, Chairman of the Board of Directors of FLC Group Joint Stock Company. FLC Group), to investigate charges of stock market manipulation.
Accordingly, the Investigative Police Agency of the Ministry of Public Security (C01) has investigated and verified Trinh Van Quyet, Chairman of FLC Group; individuals of FLC Group Joint Stock Company, BOS Securities Joint Stock Company and related companies about the behavior of “Stock market manipulation”, “Concealing information in securities activities” occurring on January 10, 2022, causing serious damage to investors, affecting the operation of Vietnam’s stock market.
Previously, on March 28, FLC Chairman Trinh Van Quyet was issued a decision by the Investigation Agency to suspend exit for a month to serve the investigation. The decision to suspend exit for Mr. Quyet was issued by the Investigation Agency on March 26.
Mr. Trinh Van Quyet was arrested for investigation on charges of manipulating the stock market.
The “hidden” sale of 75 million shares shook the stock market
In the trading session on January 10, 2022, FLC shares of FLC Group, chaired by Mr. Trinh Van Quyet, had a strong increase to 24,100 VND/share.
However, on the afternoon of the same day, this stock suddenly dropped to the floor, making investors panic.
In the trading session on January 10, FLC stock set a record of liquidity with more than 135 million shares matched and put through. This number of shares is 4-5 times higher than the average of previous trading sessions (about 30 million units/session) and equivalent to 19% of the outstanding shares of the company.
Temporarily based on the closing price of FLC stock at the closing price of January 10 at 21,150 VND/unit, the above-mentioned illegal sale brought Mr. Quyet nearly 1,600 billion VND.
On the evening of the same day, on the group’s website appeared a transaction registration form signed by Mr. Trinh Van Quyet on January 5, but without a stamp, with the content of registration to sell 175 million FLC shares, transaction value Estimated par value is 1,750 billion VND.
The expected trading time is from January 10 to 17. The purpose of the transaction is the asset structure. Agreement or order matching transaction method. According to the announcement, after the sale, Mr. Quyet reduced his ownership of FLC shares from 30.34% (215 million shares) to 5.7% (40.4 million shares).
However, later this document on FLC’s website was adjusted to the signing date of January 10, and the transaction registration time was from January 14, not January 10 as in the previous document. Both of these documents have not been published on HoSE’s website according to regulations.
On the evening of January 10, information from the State Securities Commission said that all transactions of selling FLC shares in the session of January 10 by Mr. Trinh Van Quyet were unregistered transactions. This action violated the disclosure of information on the stock market under Clause 1, Article 33 of Circular No. 96/2020/TT-BTC dated November 16, 2020 of the Minister of Finance.
At that time, unexpected trading information caused FLC shares and codes related to Mr. Trinh Van Quyet to continue to sell off in the session on January 11. FLC once lost all its range, down to 19,100 dong before bottom-fishing demand at the end of the session pulled up to 19,900 dong. The trading volume broke a record again with 154.95 million shares matched.
Canceled the transaction of selling 74.8 million FLC shares by Mr. Trinh Van Quyet
Then, on the afternoon of January 11, the State Securities Commission (SSC) issued a document directing HoSE to cancel the transaction of selling 74.8 million FLC shares on January 10 by Mr. Trinh Van Quyet and complete the transaction. return money to investors.
HoSE and VSD are responsible for determining which accounts have matched the reciprocal orders from Mr. Trinh Van Quyet’s account to cancel the order and return the money.
On the same day, FLC’s website no longer published 2 documents announcing the sale of 175 million shares of Mr. Trinh Van Quyet.
On the evening of January 11, the Ho Chi Minh Stock Exchange (HOSE) officially announced the cancellation of the transaction to sell nearly 75 million FLC shares of Mr. Trinh Van Quyet.
Also on the same day, the Ministry of Finance issued Decision No. 19/QD-UBCK on the blockade of securities accounts in the name of Mr. Trinh Van Quyet. The time to start applying the blockade measure is from January 11, 2022, the blockade period will last until the Chairman of the State Securities Commission has a decision to replace it.
The time to start applying the blockade measure is from January 11, 2022, the blockade period will last until the Chairman of the State Securities Commission has a decision to replace it.
Right after that, the State Securities Commission issued a decision to impose an administrative penalty of 1.5 billion dong on the FLC chairman, and at the same time suspending securities trading activities for 5 months.
This is not the first time that Mr. Trinh Van Quyet has sold unreported shares. Previously, at the end of 2017, the State Securities Commission (SSC) sanctioned an administrative violation due to the act of “selling without reporting” 57 million FLC shares but without reporting it in advance.
At the same time, the State Securities Commission issued a decision to administratively sanction FLC Faros Construction Joint Stock Company (ROS – at that time, by Mr. plans to sell more than 13.6 million shares of AMD Group Minerals and Investment Joint Stock Company (AMD) from October 20 to 24 but did not report it.
(Synthetic)
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