As reported by VietNamNet, the Ministry of Public Security's Investigation Police Agency has just completed a supplementary investigation conclusion, proposing to prosecute 51 defendants in the stock market manipulation case related to FLC Group Joint Stock Company.
Mr. Doan Van Phuong (born in 1977, from Thanh Hoa) while holding the position of General Director of FLC Group was assigned the additional position of Chairman of the Board of Directors of Faros Company in various stages.
As Chairman of the Board of Directors of Faros Company, from May 28, 2015 to November 9, 2019, Mr. Phuong directed members of the Board of Directors, the Board of General Directors and individuals of this company to perform a number of acts:
Directing the issuance of resolutions on increasing charter capital, preparing fake capital contribution records, accounting, legalizing capital contribution and use of fake capital contributions, preparing records for public company registration, depository registration, listing registration of 430 million shares, equivalent to 4,300 billion VND of charter capital of Faros Company; allowing Mr. Trinh Van Quyet and his accomplices to sell shares formed from fake capital contributions, appropriating more than 3,620 billion VND of investors on the stock market.
Directed and directly signed the reports, minutes, and resolutions of the Board of Directors to issue policies on capital increase and registration for listing of Faros shares; directly signed fake documents and papers to legalize accounting for fake capital contributions at Faros.
Mr. Phuong also signed documents to prepare a dossier to send to the Department of Public Company Supervision to request public company registration, request the Depository Center to register and deposit securities, request the Ho Chi Minh City Stock Exchange to approve the listing of Faros shares with an incorrect capital contribution value.
At the investigation agency, Mr. Tran Dac Sinh, Chairman of the Ho Chi Minh City Stock Exchange (HOSE) for the 2015-2020 term, and Le Hai Tra (former member of the Board of Directors, Permanent Deputy General Director, independent member of the Listing Council of the Ho Chi Minh City Stock Exchange) admitted to wrongdoing, helping Mr. Trinh Van Quyet and his accomplices list 430 million shares formed from fake capital contributions on the stock market, defrauding and appropriating more than VND 3,620 billion from investors.
Presenting the reason for helping the former Chairman of FLC, both Mr. Sinh and Tra said that it was because of their acquaintance with Mr. Trinh Van Quyet and Doan Van Phuong.
Inflating capital contribution value
The additional investigation conclusion also showed that, in his personal name, Mr. Phuong signed a contract on May 19, 2015 with the following content: Receiving the transfer of 675 thousand shares of Nguyen Van Manh at Faros Company but did not make any payment to stand as a shareholder contributing capital.
After becoming a shareholder, from May 27, 2015 to November 12, 2015, Mr. Phuong signed 4 fake capital contribution documents and 2 fake payment orders for Mr. Quyet's sister, Trinh Thi Minh Hue, to use as procedures for depositing and transferring money legally, increasing the capital contribution under the name Doan Van Phuong at Faros from 675 million VND, equivalent to 675 thousand shares, to more than 77 billion VND, equivalent to more than 7.7 million shares.
Before listing, Mr. Phuong returned more than 7.7 million shares to Mr. Trinh Van Quyet by signing a transfer contract on January 28, 2016, but no payment was made. The investigation agency believes that Mr. Phuong benefited from 500,000 shares with an issuance value of 5 billion VND.
On August 29, 2016, Mr. Phuong registered for deposit at a securities account under the name of Doan Van Phuong. In 2017 and 2018, Mr. Phuong was paid an additional dividend of 160,000 shares, bringing the total number of shares he owned to 660,000 shares.
On May 6, 2020 and May 11, 2020, Mr. Phuong's securities account sold all 660,000 shares, earning more than 2.3 billion VND.
Investigation results showed that Mr. Doan Van Phuong, together with Trinh Van Quyet and accomplices, inflated the value of capital contributions at Faros Company, registered for listing and sold shares formed from false capital contributions, appropriating more than VND 3,620 billion from investors.
According to the Investigation Police, Mr. Phuong's actions constituted the crime of Fraudulent Appropriation of Property, as stipulated in Clause 4, Article 174 of the 2015 Penal Code, as an accomplice in the role of organizing and actively assisting Mr. Trinh Van Quyet.
During the investigation, Mr. Phuong fled, but the investigation agency determined that on March 27, 2022, Mr. Doan Van Phuong left for the United Kingdom.
Mr. Doan Van Phuong is from Thanh Hoa, has a bachelor's degree in Law from Hanoi Law University, and a master's degree in Business Administration in the US. He is one of the founding shareholders of FLC Group, and has held the following positions: General Director of FLC until May 2015; Chairman of FLC Land LLC; Chairman of the Board of Directors of FLC Golf & Resort JSC; Member of the Board of Directors of FLC Media and Technology JSC.
In 2017, when he turned 40, Mr. Phuong was mentioned many times in the press when he married a beauty queen.
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