A prison term from 24 to 26 years has been proposed for Trinh Van Quyet, former chairman of the Board of Directors of the real estate developer FLC Group JSC, for the charges of "fraudulent appropriation of property" and "stock market manipulation", the Vietnam News Agency has reported.

Also at the first instance trial in Hanoi for 50 defendants in the case occuring at FLC Group JSC, seven others were prosecuted for the two charges. Specifically, Quyet’s two sisters Trinh Thi Minh Hue and Trinh Thuy Nga were proposed to get 17-19 years of imprisonment and 10-12 years of imprisonment respectively, former permanent vice chairwoman of the FLC Group Huong Tran Kieu Dung 11-13 years, deputy director of the Faros Construction JSC Trinh Van Dai 14-16 years, head of the FLC Land company’s material purchasing division Nguyen Van Manh 7-9 years, former FLC Land director Trinh Tuan 6 to 7 years and six months, and a resident of Hanoi’s Cau Giay district Nguyen Thi Hong Dung 5 to 6 years and six months.

Prison sentences from 18 months to nine years were proposed to the remaining 42 defendants who were prosecuted for "fraudulent appropriation of property”, “stock market manipulation”, "abuse of power or position while performing official duties," and "intentional dissemination of false information or concealment of information in securities activities".

According to the indictment, for the act of "fraudulent appropriation of property", from 2014 to September 2016, Quyet directed individuals who were leaders or employees of the Faros company, as well as companies within the FLC Group, and relatives and acquaintances to act as shareholders to falsify capital contribution documents to raise Faros's chartered capital from VND1.5 billion ($59,200) to VND4.3 trillion ($168 million).

They completed documents and requested State management agencies in the securities sector to approve the registration of the company as a public company, the registration of securities depository, and the listing of over 430 million shares formed from the falsified capital contribution of Faros on the Ho Chi Minh Stock Exchange.

After Faros's shares were listed on the stock exchange, from September 2016 to March 2022 (the time of indictment and detention), Quyet and his accomplices sold over 391 million shares formed from the falsified capital contribution held in the Faros Company, resulting in proceeds of VND4.8 trillion ($188.6 million), of which over VND3.6 trillion ($141.4 million) was misappropriated from investors in the stock market.

Regarding the act of "stock market manipulation", from May 26, 2017, to January 10, 2022, Quyet directed Hue and accomplices to use the identities of 45 individuals who are employees, relatives, and acquaintances to establish 20 companies and open 500 securities accounts.

Hue used these accounts to manage and conduct market manipulation activities involving five stocks, namely AMD, HAI, GAB, FLC, and ART. Following Quyet's instructions, Hue sold shares on the market for illicit gains totaling over 723 billion VND when the stock prices increased.