Why is Mr. Trinh Van Quyet accused of manipulating stock prices?
HanoiAuthorities believe that FLC Chairman Trinh Van Quyet manages employees to use 20 securities accounts to continuously buy and sell to create fake supply and demand to trade more than VND 1,689 billion.
On March 29, Mr. Trinh Van Quyet, 47 years old, was prosecuted by the Investigative Police Agency of the Ministry of Public Security and detained to investigate the crime. stock market manipulation, under Article 211 of the Penal Code.
He was accused of causing serious damage to investors and affecting the operation of the Vietnamese stock market.
Mr. Trinh Van Quyet in Quang Binh, January 2021. Photo: Hoang Apple
The investigating agency determined that from December 1, 2021 to January 10, Mr. Quyet directed individuals operating BOS Securities Joint Stock Company and its subsidiaries and satellite companies to use 20 accounts. securities of 11 institutions. These accounts “collude” with each other to continuously buy and sell securities with high frequency, creating fake supply and demand. As a result, stock prices are pushed up.
Quyet’s subordinates participated in 28/28 trading sessions, the number of bids accounted for 12% and the number of bids accounted for 7% of the total market volume. In the bullish sessions, the group of 21 securities accounts managed by Mr. Quyet ordered 77% of the total volume in the group. At the discount sessions, the group placed sell orders 94% of the total selling volume of the whole group.
This act of creating fake supply and demand has “leveraged” the price of FLC securities from 14,650 dong/share to the highest price of 24,000 dong, an increase of more than 64%.
When the stock was pushed to the “ceiling” price, Chairman Quyet directed his relatives 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/share. However, Mr. Quyet did not disclose information before trading securities. The total amount of money Mr. Quyet earned after illegally selling shares was VND 1,689 billion, illegally benefiting more than VND 530 billion, the authorities alleged.
On January 10, when HOSE discovered that it had reported to the State Securities Commission to issue a decision to block securities accounts at securities companies named after Mr. Quyet. A day later, the State Securities Commission requested to cancel the transaction with the above 74.8 million FLC shares. On January 18, Mr. Quyet was fined 1.5 billion VND and suspended trading activities for 5 months.
The headquarters of FLC Group was searched on the evening of March 29. Photo: Giang Huy
FLC Group Joint Stock Company was established in 2008 with the main business lines of real estate, securities, tourism, aviation… FLC Group has 15 subsidiaries, 2 associate companies, led by Mr. Quyet is the Chairman of the Board of Directors when holding 30.34% of the shares. The General Director, the legal representative of FLC is Ms. Bui Hai Huyen.
at Blogtuan.info – Source: vnexpress.net – Read the original article here
