Trinh Thi Thuy Nga, the sister of former FLC Group CEO Trinh Van Quyet, has been arrested by the Police Investigation Agency in a stock market manipulation case.

On Tuesday, the agency decided to prosecute and executed the arrest warrant for Nga, citing Article 21 of the Criminal Code.

According to the agency, Nga was an accomplice to her brother Quyet in stock market manipulation.

Nga, 43, is a member of the Board of Directors and Deputy CEO of BOS Securities Company. Quyet used to be the company's Chairman of the Board.

On Monday evening, Trinh Thi Minh Hue, another one of Quyet's sisters and an officer of the Accounting Department of FLC Group, was also arrested for stock market manipulation.

The agency said the crimes caused serious damage to investors, negatively affecting the country's stock market's operations.

According to documents, from December 1, 2021, to January 10, Quyet directed individuals managing BOS Securities Company, subsidiaries and satellite companies to use 20 stock accounts of 11 institutions to continuously trade on the market with high frequency, creating artificial demand and supply.

Thereby, the price of FLC shares skyrocketed from VND14,650 per share (US$0.64 per share) on December 1, 2021, to a high of VND24,050 per share, up more than 64 per cent.

After share prices hit the ceiling prices, the former CEO of FLC Group directed his family to sell 74.8 million shares at the price of VND22,586 per share without disclosing.

The total revenue from the sale was nearly VND1.7 trillion.

Immediately after the sale, the State Security Committee cancelled the transaction and refunded investors who bought FLC shares during the trade. 

Source: VNS