Thứ Năm, 22 tháng 8, 2019

56 million shares of KSA were manipulated

56 million shares of KSA were manipulated

Ms. Pham Thi Hinh (46 years old, former chairman of VSM Securities Company, and KSA Company) is accused of creating virtual stock transactions.

On August 21, Ms. Hinh and Nguyen Anh Tuan (38 years old, Head of brokerage department of Maritime Securities Company - MSI), Tran Hong Ngoc (38 years old), Nguyen Trong Hung (40 years old) were asked by Hanoi Police. indictment for Crime of manipulating the securities market in case of stock trading breach occurred at Binh Thuan Mineral Industry Joint Stock Company (KSA Company).

According to allegations, in September 2015, KSA Company issued more than 67 million shares with par value of VND 10,000 / share to increase its charter capital from nearly VND 374 billion to over VND 1,000 billion. The company was granted a certificate of public offering by the State Securities Commission within 90 days. However, investors do not buy KSA shares.

In order to be recognized the successful offering results and to approve the depository, Ms. Hinh has made a distribution list of over 56 million shares for 11 individuals and companies - all familiar places. 11 million shares remaining, the company canceled.

Ms. Hinh signed a shareholder book confirming the number of shares distributed to 11 companies and individuals. On November 26, 2015, Vietnam Securities Depository approved the depository of these shares. However, KSA shares have low liquidity and no buyers. Ms. Hinh then asked Tuan to carry out cross-accounts between the accounts to increase prices, keeping the market for this stock code.

In order to "blow prices" and manipulate the market, in early December 2015, Hinh asked employees of VSM and individuals to open 69 trading accounts at many different securities companies. 34 accounts (nearly 24 million shares of KSA) were assigned to Tuan and Hung to conduct transactions themselves. Ms. Hinh and Ngoc manage the remaining securities trading accounts.

According to the allegations, suspects Hinh, Tuan and Hung placed cross-trading orders between accounts at the meeting room of VSM company. After creating virtual transactions, KSA stock price rose sometimes to 60,000 VND / share. Nearly 1,500 investors participated in the sale.

The difference from the above transactions of investors, Ngoc withdrew then transferred to Ms. Hinh's bank account. Sometimes this money is circulated to continue making virtual transactions between accounts to attract investors

In early July 2016, KSA shares simultaneously hit the floor so cross-trading between accounts was stopped.

The investigating agency alleged that the accused created false supply and demand in the market. Nearly 1,500 investors bought 30 million KSA shares (more than VND 180 billion), but sold more than VND 172 billion, suffering losses of VND 8 billion.

On April 9, Hanoi Police commissioned 107 units of police in 54 provinces and cities, verifying 1,420 out of nearly 1,500 victims. There are 124 people and three securities companies are requesting compensation of nearly four billion dong. The rest are not recommended.

Viet Dung