Criminal probe launched into loss-making brokerage SBS: report

TN News

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Vietnamese police have opened a criminal investigation into allegations concerning information disclosure at troubled brokerage Sacombank Securities Joint-Stock Co., which is facing huge losses.

Investigators will look into several malpractices including manipulation of stock prices and hiding or falsifying information, news website VnExpress reported Friday. It said officials of the company, one of Vietnam's five largest brokerages, refused to comment on the investigation.

The brokerage, also known as SBS, has been placed under stock exchange scrutiny since July 23 after reporting a cumulative loss of VND1.4 trillion (US$68.4 million) as of the end of March.

Analysts have accused the company of intentionally hiding its financial problems over the past few years, leading to the huge loss.

SBS, listed on Vietnam's main exchange in Ho Chi Minh City, has not released financial results for the second quarter.

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Le Minh Truyen, one of its brokers, was sentenced to 12 months on probation late last year for colluding with a stock tycoon in the country's first criminal case filed for stock price manipulation.

Vietnam earlier this month arrested two leaders of SME Securities Corp. on suspicion of cheating PetroVietnam Insurance Joint Stock Corporation out of VND57 billion ($2.69 million).

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