The Ha Noi People's Court on Tuesday and Wednesday opened the first-instance trial in a case involving stock market manipulation at Binh Thuan Mineral Industry JSC (KSA). — Photo ndh.vn

The first-instance trial opened on Tuesday.

Pham Thi Hinh, 45, former chairman of the KSA Board of Directors, was jailed for 18 months.

The other three defendants, Nguyen Anh Tuan, 39, Tran Hong Ngoc, 39, and Nguyen Trong Hung, all residing in Ha Noi, were given 15-month suspended prison sentences and a 48-month probation term.

They were all convicted of manipulating the stock market under Article 211, Clause 2, Point C, Criminal Code 2015.

Pham Thi Hinh was the Chairman of the Board of Directors of Binh Thuan Mineral Industry JSC (KSA) and Chairman of the Board of Directors of VSM Securities Joint Stock Company.

At the end of 2015, Pham Thi Hinh increased charter capital of KSA by issuing 56.05 million shares to the public.

However, after the issuance, the price of KSA dropped sharply and liquidity was low, so Hinh set up accounts to conduct cross-trading in order to increase the stock prices and raise liquidity.

Hinh also instructed his accomplices, Ngoc, Tuan and Hung, to set up new 69 trading accounts. They then used those 69 accounts to trade KSA shares to create artificial supply and demand.

From December 11, 2015 to July 8, 2016, Hinh caused 1,496 investors to lose more than VND8 billion.

In addition, Mirae Asset Vietnam Securities Co Ltd, Phu Hung Securities JSC and Petroleum Securities JSC suffered total losses of VND761 million due to the illegal trading activities. — VNS