Construction firm exec arrested in fraud case involving former FLC chairman

Phu, also chief accountant of the firm, has been detained pending investigation, Lieutenant General To An Xo, spokesman of the Ministry of Public Security, said Monday.

Nguyen Thien Phu, deputy general director and chief accountant of FLC Faros. Photo by the Ministry of Public Security

Phu’s arrest happened as the police expanded investigation into fraud and stock market manipulation committed by leaders of FLC Faros and its parent company, property giant FLC.

Investigators have alleged that Phu, as FLC Faros deputy general director, helped FLC Chairman Trinh Van Quyet commit fraud in raising its capital from VND1.5 billion to VND4.3 trillion by issuing 430 million shares on the stock market between 2015 and 2016.

Quyet then asked his sister Trinh Thi Minh Hue, then an FLC accountant, to sell the shares and pocketed more than VND6.4 trillion ($273.7 million) from the proceeds.

Public Security Ministry police said last month that Quyet and his sisters Hue and Trinh Thi Thuy Nga, deputy general director of BOS Securities, are being investigated for obtaining property by fraud. All three were arrested on suspicion of stock market manipulation in March and April.

Huong Tran Kieu Dung, former vice chairwoman of the real estate group who wasarrested in April on suspicion of stock market manipulation, is also being investigated for obtaining property by fraud, police said.

Regarding stock market manipulation, investigators have found that between September 1, 2016 to January 10, 2022, Quyet instructed Hue and his employees in the accounting department to let his acquaintances form 20 companies.

They borrowed and used personal ID cards of 26 people to create 450 stock market accounts under Hue’s name, as well as the names of people and entities in 41 other companies.

Authorities said their action was aimed at manipulating the stock market through buying and selling of large stock volumes, as well as canceling orders to create a false sense of demand.

Quyet unlawfully gained over VND530 billion ($22.6 million) through such manipulation, harming investors, investigators said.