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How does Mr. Trinh Van Quyet manipulate stock prices, illegally selling 74.8 million FLC shares?

Wednesday, March 30, 2022 07:14 AM (GMT+7)

The authorities determined that Mr. Trinh Van Quyet directed individuals with family or close relationships to collude to buy and sell to push the price of FLC securities up 64% in a short time to sell “underground” 74.8 million shares. FLC bonds, illegal profit of 530 billion VND.

On the afternoon of March 29, the Investigative Police Agency of the Ministry of Public Security (C01) served the decisions to prosecute the case, prosecute the accused, and execute the arrest warrant for Mr. Board of Directors of FLC Group Joint Stock Company (FLC Group), to investigate the crime of “Stock market manipulation”, specified in Article 211 of the Penal Code.

How does Mr. Trinh Van Quyet manipulate stock prices, illegally selling 74.8 million FLC shares?  - first

Mr. Trinh Van Quyet when he was not arrested and detained

On the same day, the investigating agency organized a search of the residences and workplaces at 21 locations for the subjects related to the above case. In particular, the investigating police agency examined from 5 pm on March 29 to 0 pm on March 30 at the headquarters of FLC Group, address 265 Cau Giay (Cau Giay district, Hanoi city) but still did not find the information. accomplished.

According to the Ministry of Public Security, right after Mr. Trinh Van Quyet “hidden” 74.8 million FLC shares in the trading session on January 10, 2022, the Investigation Agency launched an investigation and verification against Trinh Van. Decision and individuals of FLC Group, Securities Joint Stock Company (CK BOS Company) and related companies about the behavior of “Manipulating the stock market”, “Concealing information in securities activities”. “.

Thereby, Mr. Quyet’s behavior caused serious damage to investors, affected the operation of Vietnam’s stock market and had enough elements to constitute the crime of “stock market manipulation”.

How does Mr. Trinh Van Quyet manipulate stock prices, illegally selling 74.8 million FLC shares?  - 2

The police agency investigated and searched at the headquarters of FLC Group, address 265 Cau Giay (Cau Giay district, Hanoi) on the evening of March 29 – Photo: Huu Hung

According to initial information, from December 1, 2021 to January 10, 2022, Mr. Trinh Van Quyet directed individuals with family or close relationships to run employees of CK BOS and other companies. Subsidiaries, satellite companies use 20 securities accounts of 11 organizations to collude to buy and sell securities with high frequency, in order to create artificial supply and demand. The above accounts participated in 28/28 trading sessions, buying orders accounted for 12% of total order volume and matched buying 2.84% of total market matching volume; Sell ​​orders accounted for 7% of total sell orders and sell orders accounted for 12% of total market sell orders.

In the bullish sessions, the group of 21 securities accounts bought with a total volume of 77% of the group’s total order volume. In the down sessions, the group placed sell orders with a total volume of 94% of the group’s total sell volume. The purpose is to push the price of FLC securities from 14,650 VND/share on December 1, 2021 to 24,050 VND/share (up 64%).

Trinh Van Quyet then assigned his family members to place an order to sell 175 million FLC shares and matched the order to sell 74.8 million FLC shares at the price of 22,586 VND/share but did not disclose information before delivery. securities transactions, with the amount of VND 1,689 billion, illegally profiting an amount of about VND 530 billion.

As reported by Nguoi Lao Dong Newspaper, in January 2022, the act of “underlying” shares of the chairman of FLC Group once caused a stir in public opinion and rattled the stock market.

Specifically, after many days of “beating up” shares of FLC at a very high price, on January 10, 2022, the Chairman of the Board of Directors of FLC Group sold 74.8 million shares of FLC but did not report it or pay it. Disclosure prior to transaction. Notably, in just one trading session, nearly 135 million FLC shares were matched, which is unusually high. While for a long time, FLC stock only trades with an average volume of 15-40 million shares per day.

Immediately after that, the State Securities Commission made a decision to block the securities account of Mr. Trinh Van Quyet, in order to prevent and prevent further acts that are not in accordance with regulations. The State Securities Commission also issued a document directing the Ho Chi Minh Stock Exchange (HoSE) to cancel the transaction of selling 74.8 million FLC shares on January 10, 2022 by Mr. Trinh Van Quyet, many investors. Get a refund for your purchase.

On January 18, the State Securities Commission issued a decision to administratively sanction Mr. Trinh Van Quyet 1.5 billion VND, the highest level according to regulations. The chairman of FLC Group was also subject to the additional sanction of suspending securities trading activities for 5 months.

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