The Investigation Police Agency of the Ministry of Public Security has just issued additional decisions to prosecute, arrest and detain suspects, prohibit them from leaving their places of residence, and search the residences and workplaces of 22 suspects in the case of "Fraudulent appropriation of property" occurring at FLC Group Corporation, BOS Securities Corporation, FLC Faros Construction Corporation and related companies.
Among them is Mr. Doan Van Phuong, former General Director of FLC Group, Chairman of the Board of Directors of Faros Construction JSC. This is a very important figure in the FLC ecosystem of former Chairman Trinh Van Quyet.
Mr. Phuong has a master's degree and resides in My Dinh, Hanoi. Like Mr. Trinh Van Quyet, Mr. Phuong has a bachelor's degree in Law from Hanoi Law University and is one of the founding shareholders of FLC. Mr. Phuong has a master's degree in Business Administration from Giggs University (USA).
After that, Mr. Phuong worked in the Postal industry, holding the position of Deputy General Manager of Hanoi Telecommunication Materials Service Company - Hanoi Post Office.
Mr. Phuong held the position of General Director of FLC from 2011 to May 2015. After that, Mr. Phuong was appointed as Permanent Vice Chairman of the Board of Directors, but also resigned a few months later.
Many years later, Mr. Phuong held key positions in a series of enterprises in the FLC ecosystem such as Chairman of the Board of Directors of HAI Agricultural Chemicals JSC; Chairman of the Board of Directors of FLC Faros Construction JSC (ROS). There was a period of time when Mr. Phuong also held the position of Chairman of FLC Thanh Hoa Football Club.
In 2017, at the age of 39, Mr. Phuong married Miss Vietnam Thu Ngan (1996). The engagement ceremony was widely reported by the media with the gift of a Rolls-Royce Wraith supercar to his wife, worth about 18 billion VND at that time. According to Dan Viet, during the engagement ceremony, there was a fleet of expensive cars including a Rolls-Royce duo, a Ferrari supercar, a Bentley and a Maybach.
However, according to Ngoi Sao, Miss Thu Ngan later divorced this tycoon in 2021 but only announced it in mid-2022.
Doan Van Phuong - a tycoon in the FLC ecosystem with many violations
As one of the founding shareholders of FLC, Mr. Phuong has held many leadership positions in the FLC group and ecosystem.
Mr. Phuong is the Chairman of the Board of Directors of Faros Construction JSC (ROS) - one of the most notorious enterprises in the Vietnamese stock market with capital inflation under the hands of "magician" Trinh Van Quyet.
ROS of FLC Faros Construction JSC is considered the most "unusual" stock on the Vietnamese stock market and is the factor that helped Mr. Quyet in late 2016 and early 2017 suddenly become the richest person on the stock market (TTCK) if calculating assets based on the number and price of the stocks that Mr. Quyet held at that time.
Within a few years of appearing on the stock exchange, this stock has shaken the market when it entered the VN30 basket and then recorded a series of "endless" increases, thereby helping former Chairman Quyet have assets worth tens of thousands of billions of VND.
Mr. Phuong was a member of the Board of Directors and General Director of FLC from 2011 to May 2015 and Chairman of the Board of Directors of FLC Faros from May 2015 to November 2016. In 2016, Mr. Phuong ranked third in the list of shareholders holding at ROS with 500,000 shares, equivalent to 0.12%.
After that, Mr. Phuong no longer held any position at Faros, but the former chairman still traded ROS shares. The tycoon from Thanh Hoa bought and sold tens of thousands of ROS shares within a week, in November-December 2021, during a sharp increase. At that time, Mr. Phuong's younger brother, Mr. Doan Viet Hoang, was also a member of the Board of Supervisors of FLC Faros.
Since being listed on the Ho Chi Minh City Stock Exchange (HoSE) on September 1, 2016, ROS shares have attracted the attention of investors. With a reference price of VND10,500/share, ROS has continuously increased very quickly and reached VND100,000/share just a few months after being listed.
The craziest period of ROS stock was from late September 2017 to early November 2017. Investors were surprised when the stock of a little-known construction company continuously increased by 10 times and then more than doubled to nearly 215,000 VND/share in early November 2017.
Since the beginning of 2018, ROS has started to decrease sharply after the company set a target of slightly increasing revenue but after-tax profit decreased sharply compared to 2017 results.
In just one year since its peak in November 2017, this stock has decreased about 5 times. By the end of 2020, ROS was close to 2,000 VND/share (adjusted price).
However, ROS is still considered a "driven" stock, with strong fluctuations, not following the business situation of the enterprise and causing many people to win or lose heavily.
By early 2022, ROS climbed back above VND15,000/share, before returning to VND2,500/share at the time before being delisted on September 5, 2022.
ROS is known as the contractor for most of the resort and real estate projects of FLC Group. This enterprise has recorded quite high profits in some years. However, this enterprise has never paid cash dividends.
After the delisting, 568 million ROS shares have not been traded on Upcom like other delisted shares because the Hanoi Stock Exchange (HNX) has to review the documents after the conclusion of the authorities. Many investors have not been able to "exit" their holdings of ROS shares.
According to the investigation results, from April 2014 to September 2016, with the purpose of appropriating investors' money, Trinh Van Quyet, his two younger sisters Trinh Thi Minh Hue, Trinh Thi Thuy Nga and Ms. Huong Tran Kieu Dung (former Vice President of FLC Group and former President of BOS Securities) completed procedures to increase the charter capital from 1.5 billion VND to 4,300 billion VND, equivalent to 430 million shares of Faros Construction JSC (ROS), the actual contribution was only over 1,197 billion VND.
After inflating the charter capital, knowing that Faros did not meet the conditions to be listed on the Ho Chi Minh City Stock Exchange (HOSE), Mr. Trinh Van Quyet still directed his subordinates to prepare documents to send to State management agencies requesting registration for depository and listing of ROS shares on HOSE.
After 430 million ROS shares were listed on the stock exchange, this group sold and appropriated investors' money.
From September 2016 to March 2022, Mr. Trinh Van Quyet assigned Ms. Hue to use accounts under the name of Trinh Van Quyet and 40 securities accounts under the names of others to buy and sell ROS shares.
Mr. Quyet directed Ms. Hue to sell more than 391 million ROS shares initially formed from fake capital contributions (shares with no guaranteed value) to earn VND 4,818 billion.
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