Why was Mr. Trinh Van Quyet accused of stock price manipulation?
Investigators believe that FLC Chairman Trinh Van Quyet directed employees to use 20 securities accounts to continuously buy and sell, creating fake supply and demand to illegally trade more than VND1,689 billion.
On March 29, Mr. Trinh Van Quyet, 47 years old, was prosecuted and detained by the Ministry of Public Security's Investigation Police Agency to investigate the crime.Stock market manipulation,according to Article 211 of the Penal Code.
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| FLC Chairman Trinh Van Quyet. |
He was accused of causing serious damage to investors, affecting the operation of the Vietnamese stock market.
The investigation agency determined that from December 1, 2021 to January 10, Mr. Quyet directed individuals operating BOS Securities JSC and its subsidiaries and satellite companies to use 20 securities accounts of 11 organizations. These accounts "colluded" with each other to continuously buy and sell securities at high frequency, creating fake supply and demand. From there, the stock price was pushed up.
Mr. Quyet's subordinates participated in 28/28 trading sessions, with the number of buy orders accounting for 12% and the number of sell orders accounting for 7% of the total market volume. In the price-increasing sessions, the group of 21 securities accounts managed by Mr. Quyet placed buy orders for 77% of the total volume in the group. In the price-decreasing sessions, the group placed sell orders for 94% of the total selling volume of the group.
This act of creating fake supply and demand has "leveraged" the price of FLC shares from 14,650 VND/share to the highest price of 24,000 VND, an increase of more than 64%.
When the stock price was pushed to the "ceiling", Chairman Quyet instructed his relatives to place an order to sell 175 million FLC shares and matched the order to sell 74.8 million FLC shares at 22,586/share. However, Mr. Quyet did not disclose the information before trading the stock. The total amount of money Mr. Quyet earned after selling the shares illegally was 1,689 billion VND, illegally profiting more than 530 billion VND, the authorities accused.
On January 10, when the HOSE discovered it, it reported to the State Securities Commission to issue a decision to freeze securities accounts at securities companies bearing Mr. Quyet's name. One day later, the State Securities Commission requested to cancel transactions with the above 74.8 million FLC shares. On January 18, Mr. Quyet was fined 1.5 billion VND and suspended from trading for 5 months.
