HANOI, Vietnam (AP) – Real estate tycoon Truong My Lan was sentenced to death Thursday by a court in Ho Chi Minh City in southern Vietnam in the largest financial fraud case in the country's history, state media Vietnam.net reported.
The 67-year-old chairman of real estate company Van Tinh Phat has been formally charged with fraud worth $12.5 billion, almost 3% of the country's GDP in 2022.
According to a report in state media VnExpress, Lan illegally controlled the Saigon Joint Stock Commercial Bank from 2012 to 2022, authorizing 2,500 loans and causing the bank to lose $27 billion. The court ordered her to pay the bank $26.9 million in damages.
Despite the mitigating circumstances that this was a first offense and that Mr. Lan had been involved in charity work, the court found that Mr. Lan was at the helm of an organized and sophisticated criminal scheme with serious consequences. He said the harsh sentence was due to the seriousness of the case. VnExpress said the money could be recovered.
Her actions “not only violate the property management rights of individuals and organizations, but also force the SCB (Saigon Joint Stock Commercial Bank) into a state of special management. They undermine the public's confidence in the leadership of the Party and the state. ”VnExpress quoted the judgment.
Her niece, Van Tinh Phat CEO Truong Hue Van, was sentenced to 17 years in prison for aiding her aunt, and Ms Lan's husband, Hong Kong native Eric Chu Nap Kee, was sentenced to 17 years in prison for aiding her aunt. was sentenced to nine years in prison.
Mr. Lan and his family founded Van Sinh Phat in 1992 after Vietnam abolished its state-run economy and opted for a market-oriented approach open to foreigners. She started helping her mother, a Chinese entrepreneur, sell cosmetics in Ho Chi Minh City's oldest market, according to state media outlet Tien Huong.
Van Thinh Phat has become one of Vietnam's wealthiest real estate companies, with projects including luxury residential buildings, offices, hotels, and shopping centers. This made her a central figure in the country's financial industry. She worked with the Central Bank of Vietnam to lead the 2011 merger of the troubled SCB Bank and two other financial institutions.
The court found that she used this method to obtain cash from SCB. Government documents say she indirectly owned more than 90% of the bank's stock (a charge she denies) and that she approved thousands of loans to “ghost companies.” Those loans were later returned to her, state media VnExpress reported, citing court statements. discovery.
She then allegedly bribed officials to cover her tracks.
Former central bank official Do Thi Niang was also sentenced to life in prison on Thursday for accepting $5.2 million in bribes.
Mr. Lan's arrest in October 2022 was one of the most high-profile in Vietnam's ongoing anti-corruption campaign, which has intensified since 2022. The so-called “Flaming Furnace” movement influenced the highest echelons of Vietnamese politics. Former President Bo Van Tuong resigned in March over his involvement in the election campaign.
However, Lan's trial shocked the nation. Analysts say the scale of the fraud raises questions about whether other banks and companies have made similar mistakes, worsening Vietnam's economic outlook and making it ideal for companies looking to pivot to supply. He said this is worrying foreign investors as Vietnam seeks to position itself as a hub. We will be chained away from China.
Vietnam's real estate sector has been particularly hard hit. An estimated 1,300 real estate companies are expected to exit the market in 2023, and rents for mixed-use properties known as shophouses in Southeast Asia have fallen as developers offer discounts and cash gifts to attract buyers. Despite prices falling by a third in Ho Chi Minh City, many real estate companies say the city center is still vacant, according to state media.
Vietnam's top politician, Communist Party General Secretary Nguyen Phu Trong, said in November that the fight against corruption will “continue for a long time.”
