Manipulating real estate stocks, an individual was fined 1.5 billion VND

The State Securities Commission (SSC) has just issued a decision to administratively sanction Mr. Nguyen Huu Duc (Da Nang) for creating fake supply and demand and manipulating stock prices.

Specifically, from January 4, 2022 to June 17, 2022, Mr. Nguyen Huu Duc used his own securities account and 75 accounts of 21 investors to continuously buy, sell, and trade shares of First Real Estate JSC (FIR) to create fake supply and demand, manipulating stock prices.

*Violations in the stock market are quite common, although in the past few years, authorities have closely monitored and issued many strong penalties.*

However, the State Securities Commission said that the results of the inspection and calculation of illegal income obtained from Mr. Nguyen Huu Duc's violations showed that there was no illegal income.

Therefore, Mr. Nguyen Huu Duc was administratively fined VND 1.5 billion and banned from securities trading for a period of 2 years, starting from November 8, 2023. At the same time, he was 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 2 years.

Last week, the State Securities Commission also decided to impose administrative sanctions on violations in the field of securities and the securities market against CFS Investment, Trade and Import-Export Joint Stock Company, headquartered at FLC Land Mark Tower Building, My Dinh, Nam Tu Liem District, Hanoi.

CFS was fined VND92.5 million for failing to disclose information required to be disclosed by law, including many financial reports...

CFS was also fined VND 150 million for disclosing false information about transactions with related parties including Hai Chau Company Limited, HAI Agricultural Pesticides JSC, FLC Stone Investment and Minerals JSC, FLC Mining Investment and Asset Management JSC according to the 2021 Audited Financial Statements.

In October, the State Securities Commission also fined Ms. Nguyen Thi Thom (Dong Da, Hanoi) 1.5 billion VND for using 9 accounts including 1 of her own and 8 accounts of other investors to continuously buy and sell shares of Bao Ngoc Investment and Production Joint Stock Company (BNA).

In early November, after the conclusion of the Trinh Van Quyet case, the Ministry of Public Security made many recommendations to relevant authorities related to the stock market. The Investigation Police Agency pointed out loopholes and shortcomings in the legal regulations on securities activities and the tricks used by criminals to appropriate investors' assets.

Accordingly, the subjects took advantage of the ease of opening securities accounts without control, then hired or asked others to open accounts under their names to use for buying and selling, creating fake supply and demand, pushing up prices, and selling for illegal profits.

In addition, taking advantage of loopholes in the process of controlling loans in the form of investment cooperation, taking advantage of securities companies and third-party companies to circumvent the law by signing contracts for customers to borrow (in the form of other investment cooperation) with fixed interest rates to gain profits, subjects with sources of money to trade, buy and sell, push up prices, and manipulate stock codes to gain illegal profits.

Many subjects are also behind companies and enterprises manipulating bidding and auction activities; manipulating the stock market... causing damage to state assets, enterprises, investors...

These subjects also thoroughly took advantage of the lack of control over social network activities, establishing many groups and secret societies to call out, incite, and attract investors, thereby controlling psychology and manipulating the market, making illegal profits, causing damage to investors...

In the coming time, the Ministry of Public Security will focus on coordinating with relevant units to continue to inspect, verify, and clarify subjects and behaviors showing signs of "Stock market manipulation", "Fraudulent appropriation of assets", and similar behaviors to promptly detect and handle them according to the provisions of law, contributing to strengthening the effectiveness of state management in the field of securities and corporate bonds, ensuring the healthy, transparent, and safe development of the market, creating trust and a stable mentality for investors.

The famous stock manipulation cases that landed the chairman in trouble with the law . Many stocks involved in the price manipulation cases increased and decreased dozens of times in a short period of time. The businesses involved did poorly, even suffered losses, but were still praised on social media.

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