LDG Chairman Fined Over Half a Billion Dong for Delay in Announcing Share Sale

The Securities Commission has just fined LDG Chairman Nguyen Khanh Hung more than 520 million VND for "secretly selling" 2.6 million shares.

The State Securities Commission announced its decision to impose administrative penalties on Mr. Nguyen Khanh Hung on August 25. In addition to the fine, the Chairman of the Board of Directors of LDG Investment Joint Stock Company was also suspended from securities trading for 4 months.

At the trading session on August 15, Mr. Hung sold 2.6 million LDG shares without disclosing information before the transaction. Explaining later, the Chairman of LDG said that from August 8 to August 15, he had several business trips away, so he made a "notification of insider stock transactions" and assigned the secretary to disclose information according to regulations.

However, according to him, because the secretary was a new employee and did not understand the regulations, it led to errors and delays in the information disclosure process. Immediately after returning to work on August 15, Mr. Hung discovered the errors and requested additional handling to ensure compliance with regulations and stopped all subsequent transactions.

The Chairman of LDG also affirmed that this stock transaction belongs to him personally, is not a stock transaction owned by the company and is not related to the interests of LDG. At the same time, this transaction is also not related to the interests between the company and its partners and customers.

At the annual meeting of LDG on August 23, Mr. Hung also apologized to shareholders and affirmed that there was no conspiracy in this matter. The LDG Chairman said that in the past, he and the leaders had to use personal assets to help the company during difficult times.

Established in 2010, LDG operates in the real estate sector with products such as land, townhouses, apartments, and urban areas in many southern localities such as Ho Chi Minh City, Binh Duong, Dong Nai, and Da Nang. The company also plans to expand its business in commercial real estate, services, and entertainment in the near future.

In 2022, LDG achieved a consolidated profit after tax of VND 4 billion, only 1.54% compared to 2021. In the first half of this year, due to the continued difficulties in the real estate market, the company only achieved revenue of about VND 1.7 billion and a loss of VND 150 billion.

Anh Tu

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