Vietnam jails first person for stock fraud

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A Hanoi court Friday sentenced a stock tycoon to four years in prison in the country's first criminal case filed for stock price manipulation.

Le Van Dung, former chairman and general director of Vien Dong Pharma JSC, was punished for opening different trading accounts to create fake demand and supply to attract investores to his company's stock, news website VnExpress reported.

Dung, 39, was also found guilty of manipulating the share price of another drug maker, Ha Tay Pharmaceutical JSC, in an attempt to acquire a holding of more than 50 percent in the company and merge it with his, the report said.

His brother, Le Van Manh, 34, an accomplice in the scheme, was sentenced to two years in prison.

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Le Minh Truyen, a broker at Sacombank Securities, will serve 12 months on probation for helping Dung in the scheme, VnExpress reported.

Vietnam made an amendment to the Penal Code in January 2010, allowing the authorities to press criminal charges against stock market manipulators and sentence them to up to seven years in prison.

Dung and his accomplices were the first to be convicted on stock-manipulation charges.

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