The People’s Procuracy in Vietnam has proposed 24-26 years in prison for Trinh Van Quyet, former chairman of FLC Group JSC, on charges of ‘fraudulent appropriation of property’ and ‘stock market manipulation.’

The charges, which could lead to a long sentence for 49-year-old Quyet, were revealed at the first-instance trial in Hanoi on Friday, which saw 50 defendants standing accused.

Quyet's case was part of a broader investigation into financial misconduct at FLC Group JSC.

He faces a proposed prison sentence of 5-6 years for ‘stock market manipulation’ and 19-20 years for ‘fraudulent appropriation of property.’

Alongside Quyet, seven other prominent figures were prosecuted.

Trinh Thi Minh Hue and Trinh Thuy Nga, Quyet's sisters, may be sentenced to 17-19 years and 10-12 years in jail, respectively.

Former permanent chairwoman of FLC Group Huong Tran Kieu Dung could be jailed for 11-13 years, while Trinh Van Dai, deputy director of Faros Construction JSC, may receive 14-16 years.

Nguyen Van Manh, head of FLC Land's material purchasing division, and Trinh Tuan, former FLC Land director, are looking at 7-9 years and 6-7.5 years respectively.

Nguyen Thi Hong Dung, a Hanoi resident, may be jailed for 5-6.5 years.

The remaining 42 defendants face varying prison terms from 18 months to nine years for charges including ‘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, Quyet orchestrated a scheme from 2014 to September 2016 to falsify capital contribution documents, inflating Faros' chartered capital from VND1.5 billion (US$59,253) to VND4.3 trillion ($170 million).

This falsified capital led to the approval of Faros' registration as a public company, with over 430 million shares listed on the Ho Chi Minh Stock Exchange.

Between September 2016 and March 2022, Quyet and his accomplices sold over 391 million shares, misappropriating more than VND3.6 trillion ($142 million) from investors.

Quyet also engaged in stock market manipulation from May 2017 to January 2022.

He directed his sister, Hue, and other accomplices to use the identities of 45 individuals to create 20 companies and open 500 securities accounts.

Through these accounts, Hue manipulated the market for five stocks: AMD, HAI, GAB, FLC, and ART, resulting in illicit gains of over VND723 billion ($28.6 million).

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