Trial on stock manipulation, fraudulent transfers re-opened

10:08 | 04/05/2019
The Hanoi People’s Court yesterday re-opened a trial involving 15 people who were charged with the falsification of stock trading documents, stock price manipulation and fraudulent asset transfers.
trial on stock manipulation fraudulent transfers re opened
The Hanoi People’s Court yesterday re-opened a trial involving 15 people who were charged with the falsification of stock trading documents, stock price manipulation and fraudulent asset transfers.-VNA/VNS Photo

The trial was suspended last March due to the absence of lawyers for defendant Vu Thi Hoa and a number of witnesses.

It was the first time the People’s Court had opened a trial on stock price manipulation.

The accused include 35-year-old Tran Huu Tiep – former management board chairman of the Central Mining and Mineral Import Export JSC (MTM), 53-year-old Nguyen Van Dinh – former director of the mining firm Nari Hamico, and former officials of the Bank for Investment and Development of Vietnam (BIDV) and Tien Phong Bank (TPBank).

Tiep, Vu Thị Hoa and Nguyen Le Truong were accused of fraudulent asset transfers.

Defendants Bui Thien Ly and Do Huu Tai were accused of manipulating stock prices.

Dĩnh and four other defendants were accused of falsification of stock trading documents.

Five other defendants were accused of forgery in the course of employment.

According to the court’s indictment, Dĩnh bought the legal documents for MTM in 2010. The company had no charter capital and no business operation.

Dinh and Tiep collaborated with bank officials to falsify the company’s portfolio, which showed MTM had 103 shareholders with 31 million shares – equal to VND310 billion (US$13.8 million) – in 2014 to meet listing requirements.

Bank officials in 2013-15 helped the two defendants counterfeit financial invoices worth VND485 billion to validate shareholders’ capital contributions and the firm’s business results.

While completing requirements to list MTM shares on the stock market, Dinh was put into custody and accused of counterfeiting business stamps and documents to avoid taxes and violating lending rules in another case.

Tiep and his partners continued to put MTM shares on the stock market in mid-April 2016 and he owned half of the company’s total post-listing shares, worth VND155 billion of charter capital.

In June 2016, when the false trading of MTM shares was discovered, the company had had more than 1,150 investors, 71 per cent of whom had reported the case to the police for investigation.

MTM shares were immediately de-listed from the stock market.

According to the court, the accused caused a VND56 billion loss to the stock market, including VND53 billion worth of revenue from selling MTM shares to other investors.

The court summoned 1.065 victims, 107 people with rights and obligations related to the case and 10 witnesses. However, few showed up.

Some 20 lawyers participated in protecting the legitimate rights and interests of the 15 defendants at the trial.

The trial will last until May 7.

VNA

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