Stock market manipulation, Louis Holdings Chairman proposed 6-7 years in prison

On the morning of May 10, at the first instance trial of defendant Do Thanh Nhan (Chairman of the Board of Directors of Louis Holdings Joint Stock Company; member of the Board of Directors of Louis Capital Joint Stock Company and Louis Land Joint Stock Company) and 7 accomplices prosecuted for the crime of "Stock market manipulation", the representative of the Procuracy holding the right to prosecute presented the indictment and proposed the sentence for each defendant.

Defendant Do Thanh Nhan testified at the trial on May 8, 2023.

Defendant Do Thanh Nhan was recommended to be sentenced to 6-7 years in prison. Three other defendants also from Louis Holdings Joint Stock Company, including: Trinh Thi Thuy Linh (Administrative Director) with 15-18 months in prison; Vu Ngoc Long (former Deputy General Director), Ngo Thuc Vu (Deputy General Director of Louis Holdings Joint Stock Company, General Director of Louis Capital Joint Stock Company) were also recommended to be sentenced to 6-9 months in prison.

The remaining four defendants from Tri Viet Securities Joint Stock Company (Tri Viet Securities Company) include: Do Duc Nam (born in 1983, General Director) 4 - 5 years in prison; Pham Thanh Tung (born in 1979, Chairman of the Board of Directors of Tri Viet Securities Company, Chairman of the Board of Directors of Tri Viet Asset Management Group Joint Stock Company) 30 - 36 months in prison but suspended; Le Thi Thu Huong (born in 1984, Deputy General Director) 30 - 36 months in prison; Le Thi Thuy Lien (born in 1987, financial services employee) 15 - 18 months in prison.

The indictment clearly stated that, with the motive and purpose of manipulating the stock market to gain illegal profits, Do Thanh Nhan took advantage of his position and authority to discuss, agree, and collude with Do Duc Nam to use a group of securities accounts registered in the names of Nhan's relatives, leaders, and trusted employees and used the money of Tri Viet Asset Management Group Joint Stock Company (Tri Viet Asset Management Company), whose legal representative Pham Thanh Tung decided to lend money in the form of a securities investment cooperation contract, to buy a large volume of shares with the stock codes BII, TGG, and take over the enterprises that issued these shares, namely Bao Thu Industrial Investment and Development Joint Stock Company (Louis Land Joint Stock Company) and Truong Giang Construction Joint Stock Company (Louis Capital Joint Stock Company). These are companies that are operating at a loss, have bad debts, have low-value stocks, are at risk of being delisted, and do not have many investors interested in buying and selling investments. The defendants directed their employees to manipulate the stock market for these two stocks at Tri Viet Securities Company to gain illegal profits.

This case is one of the cases that occurred in the field of securities and financial investment, with many violations, causing particularly serious consequences in recent times, leading to negative impacts on economic development investment activities, investment environment, and difficulties in attracting capital to serve investment and economic development of the country through the activities of the stock market.

In this case, the defendants Do Thanh Nhan, Do Duc Nam, and Pham Thanh Tung are those who hold high positions; have the highest decision-making, direction, and management power at the legal entities belonging to the “Louis Holdings ecosystem”, Tri Viet Securities Company, and Tri Viet Asset Management Company. The defendants are all highly qualified, have a long time as leaders, directors, managers, and supervisors of activities in the fields of securities, financial investment, and economics, so they have a lot of experience in this field.

However, the defendants did not develop effective investment and production and business strategies and plans that complied with the law to create legal and legitimate profits, but, despite the provisions of the law prohibiting acts of stock market manipulation, took advantage of their positions, powers and qualifications to collude to commit crimes.

The methods and tricks used by the defendants were: opening securities accounts at Tri Viet Securities Company, signing securities investment cooperation contracts with Tri Viet Asset Management Company, then using this company's money to buy and acquire a large number of stocks with codes BII and TGG (in the form of loans according to securities investment cooperation contracts) of 2 companies that are operating at a loss, have bad debts, and have low-value stocks at risk of being delisted.

Next, the defendants Do Thanh Nhan, Do Duc Nam, and Pham Thanh Tung arranged for Do Thanh Nhan, Vu Ngoc Long, and Ngo Thuc Vu to hold important positions in two legal entities issuing shares with codes BII and TGG; put these two legal entities into the "Louis Holdings ecosystem" but did not restructure the core production and business activities of these legal entities, but allowed cross-ownership to each other to show that there were investment activities, creating favorable conditions for the manipulation of shares with codes BII and TGG, continuing to use the funds of Tri Viet Asset Management Company, tools, and means of securities trading of Tri Viet Securities Company. From there, a closed circle was created to commit crimes, commanding subordinates to conduct transactions manipulating the stock market for shares with codes BII and TGG, illegally profiting an especially large amount of money from manipulating the stock market for these shares.

The representative of the Procuracy assessed that the defendants in the case all confessed honestly, repented and reformed; and had paid to remedy the consequences, so they were entitled to mitigating circumstances according to the provisions of the law. In particular, defendant Nhan paid more than 4 billion VND, defendant Nam paid 500 million VND... In particular, defendant Tung influenced and Tri Viet Asset Management Company paid the entire amount of more than 14 billion VND from the crime to remedy the consequences...

After the representative of the Procuracy argued the charges, the defense lawyers and the defendants participated in the debate, presenting arguments and points to reduce the level of criminal behavior for the defendants.

According to VNA

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