Vietnamese police on Tuesday arrested the chairman of one of the country’s largest private companies on suspicion of manipulating the stock market early this year, actions that have caused serious damage to investors and affected operations of Vietnam’s stock exchange.
According to the Ministry of Public Security, Trinh Van Quyet, chairman of property and leisure company FLC Group and its Bamboo Airways subsidiary, Quyet was accused of hiding stock transaction information.
The ministry said Quyet sold 74.8 million FLC shares on January 10, but the State Securities Commission (SSC) only received notice of the sale that evening, despite regulations requiring a notification three working days in advance.
On Jan. 17, Quyet was fined $65,800 and banned from trading in the securities market for five months for failing to disclose plans to sell shares.
Quyet has a large stocks portfolio and was once one of the wealthiest people on the Vietnamese stock exchange.
Meanwhile, FLC, which owns dozens of resorts and golf courses throughout the country, said Quyet had been cooperating with investigators.
“The incident won’t affect the legitimate rights and interests of the group’s customers, shareholders, and partners,” FLC chief executive officer Bui Hai Huyen said.
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