Headquarter of FLC Group in Cau Giay district - Hanoi. Illustrated photo

On the afternoon of March 29, 2022, the Investigation Police Agency of the Ministry of Public Security (C01) conducted an investigation and verification against Mr. Trinh Van Quyet, Chairman of the Board of Directors of FLC Group Joint Stock Company (ticker: FLC), individuals of FLC Group Joint Stock Company, BOS Securities Joint Stock Company and related companies for the act of "Manipulating the stock market", "Concealing information in securities trading activities" occurred on January 10, 2022, causing serious damage to investors, affecting the operation of Vietnam's stock market.

The above behavior of Mr. Trinh Van Quyet - Chairman of the Board of Directors of FLC Group Joint Stock Company has had enough elements to constitute the crime of "Manipulating the stock market", specified in Article 211 of the Penal Code.

Initially, on March 29, 2022, the Investigation Police Agency of the Ministry of Public Security issued the decision to prosecute the criminal case No. 06/QD-VPCQCSĐT, the prosecution and detention decisions for Trinh Van Quyet; at the same time, searches of residences and workplaces at 21 locations for related subjects

The decisions and procedural orders of the Investigative Police Agency of the Ministry of Public Security have been approved by the Supreme People's Procuracy (Service 3) in accordance with the law.

Talking with VFT, a leader of the Ministry of Finance said that the Ministry of Finance will continue to coordinate with the Investigation Agency of the Ministry of Public Security to provide relevant information within the functions and tasks of the Ministry about Mr. Trinh Van Quyet - Chairman of the Board of Directors of FLC Group Joint Stock Company, individuals of FLC Group Joint Stock Company, BOS Securities Joint Stock Company and related companies. Currently, the Ministry of Finance has also directed the State Securities Commission and its functional agencies and units to continue to closely coordinate with the investigation agency.

“The guideline of the Ministry of Finance is to uphold the law, strictly comply with the provisions of the law, strictly and properly handle mistakes, maintain discipline and transparency of the stock market” – the leader of the Ministry of Finance emphasized.

Talking to a reporter from VFT, Mr. Tran Van Dung - Chairman of the State Securities Commission said that the management agency is currently coordinating with the investigation agency of the Ministry of Public Security to provide information upon request. In the immediate future, the Securities and Exchange Commission has requested relevant businesses to disclose abnormal information for investors and shareholders’ references.

“Under the direction of the leadership of the Ministry of Finance, the State Securities Commission and functional units continue to handle issues related to this case. Accordingly, based on information and results from the Investigative Police Agency, the State Securities Commission will carry out tasks according to the order within its competence, functions and duties. In accordance with the direction of the leadership of the Ministry, we will resolutely handle in accordance with the provisions of the law, ensuring the fairness and transparency of the stock market"- the Chairman of the State Securities Commission emphasized.

In the current context, the Chairman of the State Securities Commission recommended: “Investors should stay calm and should not panic. Vietnam's stock market is still positively evaluated from good macroeconomic fundamentals and internal factors. Today, the General Statistics Office has officially announced, the macroeconomic data is positive and Vietnam is still highly appreciated by major international financial institutions for this year's economic growth. Interest rates are under pressure to increase, but basically the State Bank still maintains monetary policy to support economic growth. Regarding the market fundamentals, the prospect of profit growth of enterprises is still positive, besides other supporting factors such as cash flow participation, expectation of upgrading, equitization and divestment are pushed forward,…"

Previously, FLC Group Chairman Trinh Van Quyet has unreportedly sold 74.8 million FLC shares in January. Mr. Quyet sold the above shares without reporting or disclosing information before performing the transaction.

Immediately after, the State Securities Commission made a decision to block Mr. Trinh Van Quyet’s securities account, in order to prevent further acts that are not in accordance with regulations.

After that, Mr. Quyet was administratively fined 1.5 billion VND according to the provisions of Clause 3, Article 5, Point h, Clause 5, Article 33 of Decree No. 156/2020/ND-CP dated December 31, 2020 of the Government stipulating sanctioning administrative violations in the field of securities and securities market. The chairman of FLC was also subject to the additional penalty of suspending securities trading activities for 5 months.