In an unprecedented ruling that has captured global attention, Truong My Lan, a Vietnamese billionaire and real estate magnate, was sentenced to death after being found guilty in one of the largest financial fraud cases the world has ever witnessed. The 67-year-old chair of the Van Thinh Phat group was convicted of orchestrating a scheme that defrauded Saigon Commercial Bank (SCB) of an astonishing $44 billion over a decade.
Lan’s case is part of Vietnam’s intense crackdown on corruption, known as the ‘Blazing Furnaces’ campaign, initiated by the Communist Party’s Secretary-General, Nguyen Phu Trong. This campaign has already ensnared a significant number of officials and members of the business elite in its purview.
The court found that Lan, through falsified loan applications and an extensive network of ghost companies, diverted funds from SCB, a bank where she held a 90 percent stake. Prosecutors have revealed the staggering extent of the damages, totaling $27 billion – a sum close to six percent of the country’s GDP for 2023. The court has ordered Lan to compensate nearly the entire sum.
During the trial, it emerged that Lan had instructed her driver to withdraw a colossal sum of more than $4 billion from the bank over a three-year period, storing it in her basement. This embezzlement, totaling $12.5 billion, is equivalent to around three percent of Vietnam’s GDP.
In addition to Lan’s sentence, her husband, Hong Kong billionaire Eric Chu Nap Kee, was also implicated and received a nine-year prison term for his involvement. Eighty-five others were tried with Truong My Lan, All of the defendants were found guilty. Four received life in jail. The rest were given prison terms ranging from 20 years to three years suspended.
Lan, who began her career as a market stall vendor selling cosmetics with her mother, rose to prominence by capitalizing on Vietnam’s period of economic reform that began in the 1980s. Her venture into the real estate business led her to become one of Ho Chi Minh City’s most affluent figures, but now, her empire crumbles amidst the scandal.
The verdict has provoked a notable reaction, with protests erupting in Hanoi and Ho Chi Minh City after Lan’s arrest in October 2022. The public outcry stems from the financial ruin faced by approximately 42,000 identified victims of the scandal, many of whom are unable to recover their savings.
Prosecutors have seized over 1,000 properties linked to Lan, and it has been disclosed that $5.2 million was allegedly given in bribes to state officials to cover up the bank’s financial misconduct, constituting Vietnam’s largest-ever recorded bribe.
In her final remarks to the court, a desperate Lan, who has thoughts of appealing the verdict, reflected on her naiveté: “I am so angry that I was stupid enough to get involved in this very fierce business environment — the banking sector — which I have little knowledge of.”
Relevant articles:
– Truong My Lan: Vietnamese billionaire sentenced to death for $44bn fraud
– Who is Truong My Lan? The Vietnamese billionaire sentenced to death for fraud, AS USA, Thu, 11 Apr 2024 12:07:47 GMT
– Who is Truong My Lan? The Vietnamese billionaire sentenced to death for staggering $12.5billion financial fraud, Daily Mail, Thu, 11 Apr 2024 10:11:54 GMT
– Vietnam property tycoon sentenced to death in multi-billion dollar fraud case, Yahoo Singapore News, Thu, 11 Apr 2024 11:00:32 GMT