|The Hà Nội People's Court on Tuesday and Wednesday opened the first-instance trial in a case involving stock market manipulation at Bình Thuận Mineral Industry JSC (KSA). — Photo ndh.vn|
HÀ NỘI — The Hà Nội People's Court on Wednesday sentenced one person to 18 months in jail over stock market manipulation at Bình Thuận Mineral Industry JSC (KSA).
The first-instance trial opened on Tuesday.
Phạm Thị Hinh, 45, former chairman of the KSA Board of Directors, was jailed for 18 months.
The other three defendants, Nguyễn Anh Tuấn, 39, Trần Hồng Ngọc, 39, and Nguyễn Trọng Hùng, all residing in Hà Nội, were given 15-month suspended prison sentences and a 48-month probation term.
They were all convicted of manipulating the stock market under Article 211, Clause 2, Point C, Criminal Code 2015.
Phạm Thị Hinh was the Chairwoman of the Board of Directors of Bình Thuận Mineral Industry JSC (KSA) and the Board of Directors of VSM Securities Joint Stock Company.
At the end of 2015, Phạm Thị Hinh increased charter capital of KSA by issuing 56.05 million shares to the public.
However, after the issuance, the price of KSA dropped sharply and liquidity was low, so Hinh set up accounts to conduct cross-trading in order to increase the stock prices and raise liquidity.
Hinh also instructed his accomplices, Ngọc, Tuấn and Hùng, to set up new 69 trading accounts. They then used those 69 accounts to trade KSA shares to create artificial supply and demand.
From December 11, 2015 to July 8, 2016, Hinh caused 1,496 investors to lose more than VNĐ8 billion.
In addition, Mirae Asset Vietnam Securities Co Ltd, Phú Hưng Securities JSC and Petroleum Securities JSC suffered total losses of VNĐ761 million due to the illegal trading activities. — VNS