VietNamNet Bridge - After nearly one year of investigation, the Ministry of Public Security has completed the investigation conclusions and proposed to prosecute tycoon Nguyen Duc Kien, 49, former Vice Chairman and founder of the Asia Commercial JS Bank (ACB) and seven others on four charges: Swindling to appropriate property, doing illegal business, tax evasion and intentionally violating the state provisions on economic management causing serious consequences.

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Tycoon Nguyen Duc Kien.

The investigating agency determined that Kien directed ACBI company to mortgage over 22 million shares of the Hoa Phat Steel Joint Stock Company to ACB in order to guarantee ACBI’s issuance of bonds worth VND800 billion ($40 million).

Although the shares were mortgaged at ACB and without the consent of this bank, Kien - as Chairman of ACBI – told his inferiors to make false documents to sell the shares for VND264 billion ($1.3 million).

As the Chairman of Council of ACB Investors, Kien was fully aware of the provisions of the State Bank of Vietnam on the interest rate cap and securities trading rules but he directed the Board of Directors of ACB to entrust some employees to deposit cash to credit institutions, to grant credit to the ACB Securities Co., Ltd. to purchase stocks of ACB, causing serious consequences to the implementation of fiscal and monetary policies of the state, bringing illicit profits of over VND256 billion ($1.3 million) for the group of ACB shareholders and causing direct losses of more than VND1,407 (over $50 million) for ACB.

Kien was also accused of directing 19 employees of ACB to deposit money to Vietinbank, which was then appropriated by Huynh Thi Huyen Nhu, an official of Vietinbank HCM City branch, causing losses of nearly VND719 billion (over $30 million) to ACB.

Kien was also accused of committing tax evasion, with the amount of VND25 billion ($1.2 million) in the gold trading affair between his B&B Company and ACB.

According to the findings, by the end of 2009, ACB's share price decreased. Kien and some senior officials of ACB decided to use the bank’s capital to re-purchase ACB shares through Kien’s ACBS Company.

In this case, ACB granted ACBS VND1.5 trillion ($750 million) and then ACBS granted the capital to other companies of Kien to buy more than 52.5 million shares of ACB. So far, only VND364 billion of VND1.5 trillion was revoked while ACB shares remained over 19.5 million shares, a loss of 32.9 million shares, causing losses of over VND614 billion ($30 million) for ACB.

According to the investigating agency, ACB’s transfer of VND1.5 trillion through several firms to purchase its own shares caused losses of more than VND74 billion ($3.4 million). The ones who are responsible for the acts that caused the above losses are Kien and permanent members of the Board of Directors of ACB.

During the investigation process, the Police seized three properties owned by Kien and his wife in HCM City.

Reportedly, the seven other defendants are Mr. Tran Xuan Gia, ACB Chairman, Mr. Le Vu Ky, Mr. Pham Trung Cang, Mr. Trinh Kim Quang who are former Vice Chairs of ACB, Mr. Ly Xuan Hai, former General Director of ACB, Mr. Tran Ngoc Thanh, Director of ACB Ha Noi Investment JSC and Ms. Nguyen Thi Hai Yen, Chief Accountant of ACB Hanoi Investment JSC.

Na Son