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In a significant development within Vietnam’s anti-corruption campaign, Trinh Van Quyet, the former chairman of the FLC Group, has been sentenced to 21 years in prison. The Hanoi People’s Court found him guilty of defrauding stockholders out of nearly $150 million through fraudulent stock manipulation and inflating his company’s value.
Quyet, aged 48, was implicated in a sophisticated scheme that falsely inflated the value of FLC Faros, a general contractor subsidiary of the FLC Group. The fraudulent activities included fictitious capital contributions, which misled investors during the company’s 2016 initial public offering. Approximately 391 million shares were sold to 30,000 investors, resulting in a loss of 3.6 trillion Vietnamese dong (around $144 million).
This high-profile case included 49 defendants, many of whom were key figures in Vietnam’s business and financial sectors. Notably, Quyet’s sisters, Trinh Thi Minh Hue and Trinh Thi Thuy Nga, were also convicted and sentenced to 14 and 8 years in prison, respectively. Senior officials from the Ho Chi Minh Stock Exchange were also sentenced for their roles in enabling the fraud. The sentences ranged from 5 to 6.5 years for abusing their positions to facilitate Quyet’s fraudulent activities .
The sentencing of Quyet is part of a broader crackdown on corruption led by the Vietnamese government. The anti-corruption campaign, known as the “Blazing Furnace” campaign, was initiated by the late Communist Party General Secretary Nguyen Phu Trong. The campaign, which intensified around 2018, has targeted both public officials and private sector executives, leading to numerous high-profile arrests and convictions.
This case is one among several significant convictions in recent years, underscoring Vietnam’s stringent stance on corruption. Earlier, another prominent real estate tycoon, Truong My Lan, received a death sentence for a separate fraud case involving $12.5 billion, highlighting the severe penalties imposed on financial misconduct in the country.
The government’s relentless pursuit of justice in these cases reflects its commitment to eradicating corruption and restoring integrity within Vietnam’s financial and business sectors.
