Vietnamese Billionaire Sentenced for USD 150 Million Stockholder Fraud

Vietnamese tycoon Trinh Van Quyet was sentenced to 21 years for fraud, defrauding stockholders of nearly USD 150 million. This case is part of a broader corruption crackdown by the Vietnamese government targeting the private sector. The Hanoi People's Court also implicated several officials as co-defendants.

In a landmark case reflecting Vietnam's intensified anti-corruption drive, prominent business tycoon Trinh Van Quyet was found guilty of defrauding stockholders of nearly USD 150 million. The Hanoi People's Court sentenced Quyet, 48, to 21 years in prison after a two-week trial, as reported by state-run VN Express.

Quyet, the founder and chairman of FLC Group—known for its discount airline Bamboo Airways and extensive real estate investments—was accused of inflating the value of a subsidiary, FLC Faros, through fictitious capital contributions before its 2016 public offering. This fraudulent practice misled around 30,000 investors, extracting about 3.6 trillion Vietnamese dong (USD 144 million).

The court case also spotlighted the complicity of officials from Vietnam's State Securities Commission and Securities Depository Center, who were accused of facilitating the scheme. This verdict is part of a larger anti-corruption campaign linked to the late Nguyen Phu Trong, Vietnam's top politician, who had emphasized eradicating corruption as essential to the Communist Party's integrity.

(With inputs from agencies.)