In a landmark development in Vietnam’s ongoing anti-corruption crackdown, Trinh Van Quyet, former chairman of FLC Group, has fully compensated victims of his stock manipulation scheme to the tune of $96 million, according to state media reports.
The Hanoi People’s Court sentenced Quyet to 21 years in prison in August 2024 for defrauding investors of approximately $144 million through fraudulent capital inflation and stock manipulation at FLC Faros Construction.
This payout marks a significant step toward justice for the nearly 26,000 affected investors, but it also shines a spotlight on a broader, global fight against market manipulation, with retail investors in the United States, particularly the MMTLP community, raising their voices in a parallel struggle.
Vietnam’s High-Profile Fraud Case
Trinh Van Quyet, once a prominent figure in Vietnam’s real estate and leisure sectors, orchestrated a sophisticated scheme between 2014 and 2016, falsifying capital contributions to inflate FLC Faros’ valuation before its 2016 initial public offering (IPO).
The scheme misled around 30,000 investors, pocketing Quyet and his accomplices an illicit $144 million.
From 2017 to 2022, Quyet, alongside his sisters and other co-defendants, manipulated five stocks, including those tied to FLC Group and Bamboo Airways, generating an additional $28.85 million in illegal profits.
The court’s ruling, part of Vietnam’s aggressive anti-corruption campaign, also saw Quyet’s sisters, Trinh Thi Minh Hue and Trinh Thi Thuy Nga, sentenced to 14 and 8 years, respectively, for their roles in the fraud. Former officials of the Ho Chi Minh Stock Exchange, including ex-chairman Tran Dac Sinh, faced prison terms for enabling the scheme through abuse of authority.
Quyet’s full repayment of $96 million to victims is a rare instance of restitution in such cases, offering some relief to affected investors, though many, like Hanoi stock trader Trung, who lost nearly $8,000, expressed lingering frustration over the ordeal.
Quyet’s case underscores Vietnam’s commitment to tackling financial misconduct, a campaign that gained momentum under the late Communist Party General Secretary Nguyen Phu Trong.
The crackdown has also ensnared other high-profile figures, such as real estate tycoon Truong My Lan, who faces a death sentence for a $27 billion fraud involving Saigon Commercial Bank.
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U.S. Retail Investors Fight Back: The MMTLP Fiasco
While Vietnam grapples with its financial scandals, retail investors in the United States are waging their own battle against alleged market manipulation, with the MMTLP (Meta Materials Preferred Shares) community at the forefront.
The MMTLP case, often dubbed the “MMTLP Fiasco,” has become a rallying cry for over 65,000 retail investors who claim they were defrauded through counterfeit shares and regulatory failures.
The controversy stems from December 2022, when the Financial Industry Regulatory Authority (FINRA) imposed a U3 halt on MMTLP trading just two days before the anticipated spin-out of Meta Materials’ assets into a private entity.
This abrupt halt froze the assets of tens of thousands of investors, many of whom report losing life savings.
Posts on X describe the situation as a “complex scheme” involving naked short selling, phantom shares, and alleged collusion between regulators and bad actors.
Investors argue that FINRA and the Securities and Exchange Commission (SEC) have failed to provide transparency, refusing to release certified share counts or details on unsettled trades.
The MMTLP community has taken to social media platforms like X to amplify their cause, accusing regulators of protecting short sellers who profited from counterfeit shares while leaving retail investors in limbo.
The community has also appealed directly to SEC Chairman Paul S. Atkins, urging immediate action to address the frozen assets and systemic issues.
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A Global Call for Transparency and Accountability
The parallels between Vietnam’s crackdown on financial fraud and the MMTLP community’s fight in the U.S. highlight a universal demand for transparency and accountability in financial markets.
In Vietnam, Quyet’s repayment offers a rare victory for defrauded investors, but the scale of the fraud—impacting 6% of the nation’s 2023 GDP—reveals deep systemic vulnerabilities.
Similarly, U.S. retail investors are pushing for reforms to address naked short selling and regulatory oversight failures, which they claim enable market manipulation to go unchecked.
The MMTLP community’s activism has gained traction, with calls for congressional investigations and comparisons to other high-profile retail investor movements, such as the AMC and GameStop sagas.
The community’s persistence has sparked broader discussions about the role of retail investors in holding financial institutions accountable.
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Moving Forward
As Vietnam continues its anti-corruption purge and Quyet’s victims receive compensation, the global financial community watches closely.
The MMTLP case, meanwhile, serves as a stark reminder that retail investors are no longer passive players.
Through social media campaigns, public advocacy, and direct appeals to regulators, the MMTLP community is driving awareness of market manipulation and demanding systemic change.
Both cases underscore the need for robust regulatory frameworks to protect investors from fraud and manipulation.
While Quyet’s repayment marks a step toward justice in Vietnam, the unresolved MMTLP situation in the U.S. signals that the fight for fair markets is far from over.
As retail investors worldwide amplify their voices, the pressure mounts for regulators to act decisively to restore trust in global financial systems.
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