On the afternoon of March 2, at the regular Government press conference in February, information about the investigation results of the Tan Hoang Minh and FLC cases; healthy solutions for the stock market? as well as information about the investigation of the recently prosecuted Phuc Son Group Joint Stock Company?, Lieutenant General To An Xo, Spokesperson of the Ministry of Public Security, said that through the FLC and Tan Hoang Minh cases, the Ministry of Public Security has sounded the alarm about the phenomenon of manipulation of the stock market and the bond market. The investigation agency has concluded the investigation, the Procuracy has announced the indictment, and will soon bring this case to trial.
Pointing out Trinh Van Quyet's market manipulation behavior
According to Mr. Xo: Through the investigation process, the investigation agency discovered that FLC's stock market manipulation was demonstrated through two acts. First, fraud and appropriation of assets when the defendant Trinh Van Quyet directed the creation and signing of fake capital contribution documents at FLC FAROS Construction Joint Stock Company, inflating the capital from 1.5 billion to 4,300 billion VND. Then, the documents were legalized so that the state securities management agency could accept the registration. From there, he carried out fraudulent acts and appropriated 3,620 billion VND.
Second is the act of stock market manipulation, Quyet directed to borrow personal documents of 400 relatives, set up 20 companies but did not do business, used the name of the legal entity to open 500 securities accounts to conduct stock manipulation acts. The manipulation method is to continuously buy and sell the same type of securities, buy and sell matching orders within the group so as not to lead to the actual transfer of ownership. Place many buy and sell orders to control the market at opening and closing times; place buy and sell orders and then cancel them to create fake supply and demand to lure investors to buy.
During the implementation process from May 26, 2017 to January 10, 2022, this group used 190 accounts to manipulate and illegally profit 723 billion VND.
“The investigation agency found 6 reasons. Accordingly, there are loopholes and shortcomings in state management, some regulations related to the law such as: the competent authorities lack inspection, supervision and control over the contribution of charter capital at enterprises, organizations and individuals declare without inspection and supervision, leading to false declarations and then proceeding to legalize documents. Lack of control over account opening, opening securities accounts makes it easy to ask others to open multiple accounts and conduct manipulation activities. The sanctions are still light, not enough to deter violators. Regulations on state management of quality control and personal responsibility auditing services in these positions are not specific and loose. Lack of control over social network activities when some subjects take advantage of closed groups to call for, attract investors, control and manipulate” - Mr. Xo clearly stated and said that the competent authorities are “patching” and “covering” these loopholes. Hope the stock market will develop healthily in the coming time.
Mr. Xo also said that from these cases, the police agency also sent a message to stock traders that "they should not take advantage of loopholes to manipulate the stock market. Anyone or any organization that continues to manipulate the stock market will certainly be invited by the investigation agency to "live in a narrow space" so that the stock market can operate healthily.
Phuc Son has won many large projects since 2015.
Regarding the case of Phuc Son Group Joint Stock Company, according to Mr. Xo: This company has been operating since 2004, operating construction at the district level. But since 2015, this company has grown strongly, receiving many projects from the North and the South.
Up to now, the company has 21 projects with a total investment of over 40 trillion VND. The investigation agency has only examined 2 projects and found that the company left them off the books, did not declare them in the financial system, evaded taxes, causing a loss of over 640 billion VND to the state budget, and currently the company still owes tens of thousands of billions of VND in taxes. Many real estate projects are not yet qualified to be sold or put on the market, but the company has sold and collected money but has not handed over land to investors, causing a loss of tens of thousands of billions of VND to the people.
Mr. Xo added that initially, the responsibility lies with the management agencies for not controlling the financial declaration activities of this company, lacking the inspection and supervision of specialized agencies.
Although the companies do not fully fulfill their tax obligations, they still operate. Then they do not grasp the reality of the business when receiving projects. For example, this company was originally a small district-level enterprise but has grown to go everywhere, winning bids for projects worth tens of thousands of billions of VND while the company's capacity is very moderate. Many powerful corporations do not receive large projects like this. Even the Deputy General Director of this company has only finished 4th grade.
“The poor overcoming difficulties is welcome, but the poor overcoming difficulties to get rich must not affect the legitimate rights and interests of the people and the state. Currently, the investigation agency is expanding the investigation to focus on clarifying the right people, the right crimes, and recovering assets for the state and the people,” said Mr. Xo.
Source
Comment (0)