Vien Dong CEO accused of fraud, forgery

The Investigation agency under the Ministry of Public Security has decided to prosecute four men and remand them to the Supreme People’s Procuracy for manipulating stocks by falsified means to inflate prices last year.

(File) Le Van Dung, CEO of the Vien Dong Pharmaceutical Company

Le Van Dung, former chairman and CEO of the Vien Dong Pharmaceutical Company; Nguyen Van Viet, Dung’s brother-in-law and member of Vien Dong Management Board;  Le Van Manh, Dung’s brother and chairman of Vien Dong company and Le Minh Truyen, a stockbroker from Sacombank Securities are the four accused of fraud and forgery.

39 year old Le Van Dung will be the first person ever to be indicted in Vietnam for stock manipulation, if he happens to be charged.

According to the proceeding investigation, Dung was found to have opened 12 accounts under his and relatives’ names to conduct falsified transactions to raise share prices of the Vien Dong Company.

Dung carried out hundreds of falsified transactions in selling and buying of DVD shares from his various accounts to create a false impression in the market that Vien Dong DVD stocks were in high demand, to attract investors between early 2010 till September 2010.

Investigators revealed that the total value of these falsified deals amounted to VND221 billion (US$10,755,000). Manh, Viet and Truyen joined in to help Dung conduct these illegal transactions.

In addition, Dung and his companies colluded with others to conduct false transactions of securities and shares of the Ha Tay Pharmaceutical Company with the aim of taking over and merging it with Vien Dong. This caused huge losses to other investors.

Moreover, Dung and his companies gave incorrect information to hide the real transactions in securities and even forged documents and state seals.

By Ng. Anh - Translated by Nha Tran

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