The Hanoi People’s Court on August 5 announced a sentence of 21 years in prison to 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.

Of the total prison term, Quyet, also former Chairman of the Bamboo Airways JSC, got 18 years for "fraudulent appropriation of property" and the remainder for "stock market manipulation" as decided by the Hanoi People’s Court.

Seven others in the case also faced the same charges, comprising Quyet’s younger sisters - Trinh Thi Minh Hue and Trinh Thi Thuy Nga, both accountants at the FLC Group JSC, who will spend 14 years and eight years behind bars, respectively.

Former Permanent Chairwoman of the FLC Group Huong Tran Kieu Dung got eight and a half years in prison, while Deputy Director of the Faros Construction JSC Trinh Van Dai, 11 years. The head of the FLC Land Company’s material purchasing division Nguyen Van Manh got six years, while former FLC Land Director Trinh Tuan received a sentence of four and a half years. Finally, a resident of Hanoi’s Cau Giay district, Nguyen Thi Hong Dung, received a sentence of four years.

 The court sentenced the remaining 42 defendants in the case with jail terms ranging from a suspended sentence to 15 months in prison, and to seven and a half years for the counts of "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".

Another defendant, Doan Van Phuong (former General Director of the FLC Group, and Chairman of the Board of Directors of the Faros Construction JSC), is currently on the run, and wanted by the investigation agency.

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 ($171 million).

They completed documents and requested State management agencies in the securities sector to approve the registration 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 ($189 million) of which over VND3.6 trillion 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 VND723 billion ($28.47 million) when the stock prices increased.