23 individuals banned from trading stocks over GKM stock manipulation

The State Securities Commission has just issued a decision to impose administrative sanctions on 23 individuals who lent accounts to trade securities, leading to violations of stock market manipulation for GKM shares of GKM Holdings JSC.

The State Securities Commission has just issued a decision to impose administrative sanctions on 23 individuals who lent accounts to trade securities, leading to violations of stock market manipulation for GKM shares of GKM Holdings JSC.

Specifically, 23 individuals lent their accounts to others to trade securities or held securities on behalf of others, leading to stock market manipulation. Including: investors Nguyen Van Dao, Le Thi Nguyet, Nguyen Phi Diep, Nguyen Thi Yen, Hoang Van Hai, Hoang Truong Vinh, Nguyen Ngoc Hung, Nguyen Manh Thang, Nguyen Quang Huy, Do Quang Trung, Pham Tien Dat, Nguyen Thi My Hanh, Nguyen Thi Thu, Pham Ngoc Thuyet, Pham Thi Cam Van, Hoang Van Minh, Nguyen Van Tung, Vu Thi Nhung, Nguyen Thi Huyen, Nguyen Thi Giang, Le Trong Long, Nguyen Thi Thuy Hang, Pham Si Giang lent Mr. Nguyen Viet Ha his account to trade securities, leading to stock market manipulation (manipulating GKM stock prices) in the period from August 2, 2021 to January 28, 2022.

Based on the results of inspection and supervision, there is no basis to show that the 23 individuals mentioned above have any illegal profits from the violations.

The State Securities Commission has decided to ban the above 23 individuals from securities trading for a period of 2 years from November 14, 2024. The above individuals are also banned from holding positions at securities companies, securities investment fund management companies, branches of foreign securities companies and fund management companies in Vietnam, and securities investment companies for a period of 02 years from November 14, 2024.

Previously, in December 2023, the State Securities Commission issued a decision to fine Mr. Nguyen Viet Ha - former General Director of GKM VND 1.5 billion for violating the law on stock market manipulation. During the period from August 2, 2021 to January 28, 2022, Mr. Nguyen Viet Ha used 23 accounts to continuously buy, sell, and trade GKM shares to create fake supply and demand, manipulating GKM stock prices.

The results of the inspection and calculation of the illegal income obtained from Mr. Nguyen Viet Ha's violations showed that there was no illegal income. Therefore, the State Securities Commission has banned Mr. Ha from trading securities for a period of 02 years, starting from October 9, 2023, and banned him from holding positions at securities companies, securities investment fund management companies, branches of foreign securities companies and fund management companies in Vietnam, and securities investment companies for a period of 02 years, starting from October 9, 2023.

During the period of stock price manipulation, GKM skyrocketed from VND7,000/share to around VND40,000/share. Although the decision to punish the company's former General Director for stock manipulation was issued in December 2023, it was not until September 2024 that the stock actually fell in price when it continuously hit the floor.

GKM stock trading performance from 2021 to present

Currently, this code is at the same level as before the stock manipulation period. At the end of the trading session on November 15, 2024, GKM closed at VND 6,900/share, equivalent to a decrease of more than 80% compared to the beginning of September 2024. Notably, GKM has just experienced 2 consecutive ceiling price sessions in the session of November 14-15, 2024.

GKM, formerly known as Khang Minh Brick Joint Stock Company, was established in 2010. The company operates mainly in the field of manufacturing and trading construction materials from cement and gypsum, and financial investment. As of September 30, 2024, GKM has total assets of 452 billion VND. Profit after tax recorded in the independent financial report for the third quarter of 2024 is 1.5 billion VND, accumulated profit after tax in the first 9 months of 2024, the company's profit after tax is more than 5 billion.

Not only related to the stock price manipulation case, in April 2024, GKM was also fined for distributing individual securities in violation of legal regulations (the Company distributed individual bonds code GKMH2124001 beyond the 90-day deadline from the date of information disclosure before the bond offering), disclosing information not on time according to legal regulations on individual bonds and providing incomplete information according to legal regulations on transactions between the Company and insiders and major shareholders of the Company in the 2022 Corporate Governance Report.

Source: https://baodautu.vn/23-ca-nhan-bi-cam-giao-dich-chung-khoan-vi-vu-thao-tung-co-phieu-gkm-d230175.html