The defendants at the High People’s Court in Hà Nội on Thursday. VNA/VNS Photo

HÀ NỘI — The High People’s Court in Hà Nội on Thursday delivered its appellate verdict in a major financial case involving former executives of FLC Group JSC, who were accused of manipulating the stock market and fraudulently appropriating assets.

The court significantly reduced prison terms for several defendants, citing full restitution of damages and other mitigating circumstances.

After 10 days of hearings, the appellate panel concluded that the consequences of the case had been fully addressed by the defendants. The court accepted their appeals, reduced prison sentences and converted some custodial sentences into financial penalties, particularly for those charged with stock market manipulation.

Former Chairman of FLC Group Trịnh Văn Quyết was sentenced to seven years in prison for fraudulent appropriation of assets, marking a substantial reduction from the 18-year sentence handed down in the first-instance trial. 

For stock market manipulation, the court imposed a fine of VNĐ4 billion (US$153,000), replacing the original three-year prison sentence.

In total, Quyết will serve seven years in prison and pay a fine of VNĐ4 billion, marking a 14-year reduction of his original sentence. 

Two of Quyết’s sisters, who were co-defendants in the case, also received reduced sentences. Trịnh Thị Minh Huế was sentenced to four and a half years in prison, down from 14 years, and fined VNĐ3.5 billion ($133,900). Trịnh Thị Thúy Nga was sentenced to time already served in pre-trial detention, down from eight years, and fined VNĐ3 billion ($114,700).

Hương Trần Kiều Dung, former Vice Chairwoman of FLC Group, was fined VNĐ3 billion for stock market manipulation, replacing her original two-year prison sentence. She also received a sentence of three and a half years in prison for fraudulent appropriation, reduced from an original sentence of six and a half years. 

Other defendants who did not file appeals but had new mitigating circumstances were also granted sentence reductions to ensure consistency.

Former Deputy CEO of the HCM City Stock Exchange (HOSE) Lê Hải Trà was sentenced to four years in prison, down from five, for abuse of position and authority while performing official duties. Trần Đắc Sinh, former Chairman of HOSE’s Board of Directors, received a sentence of four and a half years, down from six and a half years, on the same charge.

The appellate court rejected compensation appeals filed by some investors. The court ruled that Quyết had fully repaid the damages, and that compensation was calculated based on the stock prices at the time of purchase. Therefore, there was no legal basis to accept requests for increased damages. The court noted that investors who did not participate in this trial may pursue separate civil lawsuits.

The appellate verdict also lifted previously imposed asset seizures and account freezes on the defendants.

During the hearing, the court acknowledged that Quyết had submitted more than 5,000 petitions for leniency. He was reported to suffer from chronic health issues requiring long-term treatment and was recognised for his previous charitable activities and family background tied to Việt Nam’s revolutionary movement.

Quyết and his two sisters had together paid VNĐ2.46 trillion ($94.1 million) in restitution, exceeding the required amount by more than VNĐ46 billion ($1.76 million) to ensure full compliance with the court’s orders.

The appellate panel stated that the defendants’ full financial restitution demonstrated a clear sense of responsibility, remorse and efforts to address the consequences of their actions.

According to the indictment, between May 2017 and January 2022, Quyết directed relatives and subordinates to establish companies and open securities and bank accounts. The group then carried out a series of stock manipulation activities involving five listed companies: AMD, HAI, GAB, FLC and ART. Once share prices rose, Quyết instructed the sale of shares, illicitly gaining more than VNĐ723 billion ($27.6 million).

In an earlier scheme, between 2014 and September 2016, Quyết instructed executives and employees of Faros Construction JSC (stock code ROS), as well as other FLC subsidiaries and family members, to falsely declare themselves as shareholders. They fabricated capital contribution documents to fraudulently increase Faros’ charter capital from VNĐ1.5 billion ($57,400) to VNĐ4.3 trillion ($164.6 million). Subsequently, Quyết listed and sold Faros shares, defrauding investors of approximately VNĐ3.6 trillion ($138 million). 

Officials from the State Securities Commission, the Việt Nam Securities Depository and HOSE were found to have relied on falsified audit reports and documents submitted by Faros when approving its public company status, registering securities and listing 430 million ROS shares on the exchange. — VNS