Stricter financial oversight and enhanced regulations on cross-trading could help mitigate price rigging on the stock market in Vietnam. Lessons from stock market manipulation cases Le Ngoc Nong, an investor from Quang Nam Province, was drawn in by the volatile prices of FLC Group shares. However, he soon found himself in huge debt and was forced to sell his house to repay loans. In the recent trial of FLC’s stock market manipulation, investors like Nong received only minimal compensation for their losses. The court ruled that only shareholders of ROS, one of the manipulated stocks, were eligible for compensation, with a rate of VND7,215 per share. Investors holding other FLC-related stocks, including AMD, HAI, GAB, FLC, and ART, received no compensation. Other cases of market manipulation have surfaced involving companies like Louis Holdings and Binh Thuan Industrial and Mineral JSC (KSA). A common theme in these cases is the collusion of company leaders, such as Do Thanh Nhan, chairman of Louis Holdings, and Trinh Van Quyet, former chairman of FLC Group, with executives at securities companies. These individuals often directed relatives and subordinates to establish and manage hundreds of securities accounts. These accounts were then used to buy and sell […]
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