As reported by VietNamNet, the Investigation Police Department of the Ministry of Public Security has just completed its supplementary investigation report, recommending the prosecution of 51 defendants in the stock market manipulation case related to FLC Group Joint Stock Company.
Mr. Doan Van Phuong (born in 1977, from Thanh Hoa province) was appointed Chairman of the Board of Directors of Faros Company during several periods while serving as General Director of FLC Group.
As Chairman of the Board of Directors of Faros Company, from May 28, 2015 to November 9, 2019, Mr. Phuong directed members of the Board of Directors, the General Management Board, and individuals within the company to carry out a number of actions:
He directed the issuance of resolutions on increasing charter capital, creating fictitious capital contribution documents, accounting, legitimizing the capital contribution and use of fictitious capital, preparing documents for public company registration, registration for custody, and listing of 430 million shares, equivalent to 4,300 billion VND in charter capital of Faros Company; enabling Mr. Trinh Van Quyet and his accomplices to sell shares formed from fictitious capital contributions, embezzling more than 3,620 billion VND from investors in the stock market.
He directed and directly signed the submissions, minutes, and resolutions of the Board of Directors to issue policies on increasing capital and registering for the listing of Faros shares; he directly signed fictitious documents and records to legitimize the accounting for the fictitious capital contribution to Faros.
Mr. Phuong also signed documents to prepare files submitted to the Public Company Supervision Department requesting registration of the public company, requesting the Securities Depository Center to register and deposit securities, and requesting the Ho Chi Minh City Stock Exchange to approve the listing of Faros shares with a capital contribution value that did not reflect the actual value.
At the investigative agency, Mr. Tran Dac Sinh, Chairman of the Ho Chi Minh City Stock Exchange (HOSE) for the 2015-2020 term, and Le Hai Tra (formerly a member of the Board of Directors, Permanent Deputy General Director, and independent member of the Listing Council of the Ho Chi Minh City Stock Exchange) admitted to wrongdoing, helping Mr. Trinh Van Quyet and his accomplices list 430 million shares formed from fictitious capital contributions on the stock market, defrauding investors of more than 3,620 billion VND.
Explaining their reasons for helping the former FLC chairman, both Mr. Sinh and Mr. Tra stated that it was due to their acquaintance with Mr. Trinh Van Quyet and Mr. Doan Van Phuong.
Inflating the value of capital contributions.
The supplementary investigation concluded that, acting in his personal capacity, Mr. Phuong signed a contract on May 19, 2015, stating that he would receive the transfer of 675,000 shares from Nguyen Van Manh in Faros Company, but no payment was made, in order to be listed as a contributing shareholder.
After becoming a contributing shareholder, from May 27, 2015 to November 12, 2015, Mr. Phuong forged four deposit slips and two payment orders for fictitious capital contributions. Mr. Quyet's sister, Trinh Thi Minh Hue, used these to legitimize the deposit and transfer of funds, artificially inflating the capital contribution under Doan Van Phuong's name in Faros from 675 million VND, equivalent to 675,000 shares, to over 77 billion VND, equivalent to over 7.7 million shares.
Prior to the listing, Mr. Phuong returned over 7.7 million shares to Mr. Trinh Van Quyet through a transfer contract signed on January 28, 2016, but no payment was made. The investigating agency believes that Mr. Phuong benefited from 500,000 shares with an issuance value of 5 billion VND.
On August 29, 2016, Mr. Phuong registered a securities account under the name Doan Van Phuong. In 2017 and 2018, Mr. Phuong received an additional dividend of 160,000 shares, increasing his total ownership to 660,000 shares.
On May 6th and May 11th, 2020, Mr. Phuong's securities account sold all 660,000 shares, earning over 2.3 billion VND.
The investigation revealed that Doan Van Phuong, along with Trinh Van Quyet and accomplices, inflated the value of capital contributions to Faros Company, registered for listing and sold shares formed from the fictitious capital contributions, and embezzled over 3,620 billion VND from investors.
According to the investigating agency, Mr. Phuong's actions constituted the crime of Fraudulent Appropriation of Property, as stipulated in Clause 4, Article 174 of the 2015 Penal Code, and he was an accomplice in the role of organizing and actively assisting Mr. Trinh Van Quyet.
During the investigation, Mr. Phuong absconded, but the investigating agency determined that on March 27, 2022, Mr. Doan Van Phuong left the United Kingdom.
Mr. Doan Van Phuong, originally from Thanh Hoa province, holds a Bachelor of Law degree from Hanoi Law University and a Master of Business Administration degree from the United States. He is one of the founding shareholders of FLC Group and has held the following positions: General Director of FLC until May 2015; Chairman of FLC Land Co., Ltd.; Chairman of the Board of Directors of FLC Golf & Resort JSC; and Member of the Board of Directors of FLC Media and Technology JSC.
In 2017, at the age of 40, Mr. Phuong was frequently mentioned in the press when he married a beauty queen.
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