Suspect leading the CMS stock manipulation group – Photo: Provided by the police
On August 30, Hanoi Police announced that the Investigation Police Agency had decided to prosecute 7 people for stock market manipulation.
These people were identified to have actions related to the stock code CMS of CMH Vietnam Group Joint Stock Company.
According to the investigation, this group was led by Tran Binh Minh (born in 1982, in Thanh Xuan, Hanoi).
From May 2023 to October 2023, Minh colluded and enticed many people to place orders to buy and sell securities with the stock code CMS, affecting supply, demand and stock prices.
In which Tran Binh Minh bought CMS stock code at low price to push CMS stock price up and then sold it for profit.
To carry out the intention of manipulating the stock market, Minh, Nguyen Hoang Thi, Le Xuan Cao, Phung Tien Thanh, Ha Duc Dat, Tran Ngoc Son, Tran Ba Tuan, Nguyen Ngoc Son, Tran Anh Tuan… created and used groups on social networking applications to call for and give opinions on trading many stock codes, including CMS.
The purpose is to guide investors’ buying and selling decisions for the stocks held by this group.
The above behavior was determined by the police to have affected the price movement of CMS code in 2023.
On some days, these groups have pre-quoted the price of CMS stock. Notably, this price accurately reflects the performance of CMS stock during that session or the following day.
When the stock price peaked in September 2023, Tran Binh Minh and related people sold a large amount of CMS shares to make illegal profits, causing many investors to suffer losses and reducing the transparency of the stock market.
To buy and hold stocks, as well as to “carry” the price of CMS code, the suspects used many securities accounts to buy and sell CMS code.
The State Securities Commission determined that these accounts had bought and sold large amounts of CMS shares, reaching the suspicious transaction warning threshold.
During the period from May 4, 2023 to October 31, 2023, the suspects earned more than VND 10 billion. Of which, Tran Binh Minh’s personal securities account alone earned more than VND 5.5 billion from CMS stock trading.
The Hanoi Police Investigation Agency announces: Victims who are investors who purchased CMS stock code in the period from May 4, 2023 to October 31, 2023, should contact the Hanoi Police Economic Police Department (address: 54 Tran Hung Dao, Hang Bai Ward, Hoan Kiem District, Hanoi) before September 30 to resolve according to regulations.
Forming a group to manipulate stocks is a cunning act.
Hanoi police warn of the situation of taking advantage of establishing and using groups on cyberspace to call for and encourage investment in buying a group of stock codes with the aim of manipulating prices, causing negative impacts on the stock market.
This method and trick is considered sophisticated and cunning, taking advantage of the anonymity and popularity of cyberspace to operate.
Hanoi police are resolutely fighting against these groups, contributing to creating a healthy, safe and fair investment environment for investors.
Hanoi police recommend that investors proactively research information about stock codes, operations, and finances of listed companies to choose appropriate investments, avoiding criminals taking advantage of and causing great economic damage.