Information about Mr. Trinh Van Quyet – Chairman of the Board of Directors of FLC Group Joint Stock Company illegally selling tens of millions of FLC shares is causing a stir in public opinion recently. Currently, the Ministry of Finance has issued Decision No. 19/QD-UBCK on the blockade of securities accounts in Mr. Trinh Van Quyet’s name and is considering sanctioning this behavior.
In fact, this is not a rare behavior in the world stock market. The richest billionaire on the planet Elon Musk has repeatedly been sanctioned by the US Stock Exchange (SEC) on a number of issues related to the behavior of disturbing the stock market.
Notable among them is the 2018 incident. Accordingly, in early August 2018, through a statement on Twitter, Elon Musk made a shocking statement that he was considering turning Tesla Inc. become a private company to remove the pressure of suffering losses. This news really shocked investors and sent Tesla shares soaring as much as 13%. This move comes at a time when it is reported that Saudi Arabia’s state investment fund has nearly 5% of shares worth $ 2 billion in Tesla.
At the time, many people thought that Musk made unsubstantiated claims to “drive stock” or hurt investors short selling Tesla stock. In fact, according to estimates by S3 Partners, Musk’s tweet cost Tesla short sellers about $1.27 billion.
On September 27, the SEC filed a lawsuit against Elon Musk for alleged fraud. Specifically, in the statement provided by the SEC to BI, Musk is accused of making “false and misleading” statements and not adequately informing authorities of the company’s events.
With these allegations, the SEC asked the court to ban Musk from serving as CEO or board member of any public company in the US. For his part, Musk responded that he was sad and disappointed about the “baseless action” of the SEC.
However, Tesla later reached a separate settlement with the SEC.
Accordingly, Elon Musk will be allowed to stay in the position of CEO of Tesla but must leave the position of chairman of the Board of Directors within the next 45 days. According to court filings, he also cannot run for re-election for the next three years.
In addition, Tesla agreed to pay $20 million to settle allegations that the company did not adequately control Musk’s tweets.
And yet, Tesla also has to commit that from now on Musk’s statements will have to be strictly controlled, censored by lawyers before posting on social networks.
The company also agreed to appoint two new independent directors to the Board of Directors and set up a Board Committee to oversee Musk’s communications.
The incident later still became a black mark in Musk’s career, being discussed by many people. Some people criticized that the SEC’s ruling at that time was still too lenient when Musk still retained the CEO position. However, according to Rebecca Roiphe, a professor at New York law school, it would be a mistake to remove Musk from the Tesla leadership position. If Musk is no longer CEO, investors could suffer because Musk is the founder, major shareholder, and the brains behind Tesla’s success.
“The SEC is a watchdog whose purpose is to protect the interests of investors. While it shares some goals with the federal prosecuting agency, the SEC’s mission is completely different,” he said.