3-12-2024 (HANOI) A Vietnamese court has affirmed the death sentence for prominent real estate magnate Truong My Lan in what has become the nation’s most significant financial fraud case, involving a staggering $12 billion scheme.
The High People’s Court in Ho Chi Minh City dismissed Lan’s appeal against her April conviction, ruling that the severity of her crimes warranted the ultimate penalty. The former chairwoman of Van Thinh Phat Holdings Group was found guilty of orchestrating an elaborate embezzlement and bribery scheme that sent shockwaves through Vietnam’s financial sector.
In a remarkable provision, court documents revealed that Lan could potentially have her sentence reduced to life imprisonment if she manages to repay three-quarters of the embezzled funds whilst on death row.
Prosecutors emphasised the unprecedented scale of the fraud, stating that Lan’s actions had inflicted far-reaching damage to Vietnam’s economy and financial markets. “The magnitude of this embezzlement case is unparalleled in our nation’s judicial history,” the prosecution declared during the appeal hearing.
The case triggered a crisis at Saigon Joint Stock Commercial Bank (SCB), where Lan maintained significant control through proxy ownership. Her arrest in 2022 sparked a consumer panic, leading to a massive withdrawal of deposits from the institution. The situation prompted the Vietnamese central bank to implement an emergency rescue package, injecting approximately $24 billion in special loans to stabilise the bank.
The verdict forms part of Vietnam’s extensive anti-corruption drive, dubbed “Blazing Furnace,” which has targeted high-profile business figures and government officials. In addition to her death sentence, Lan received a life term in October for separate charges including money laundering and illegal cross-border financial transactions.
While Lan’s legal team cited mitigating factors, including her admission of guilt and partial restitution of funds, the court maintained that these considerations were insufficient given the scale of the fraud. She retains the right to pursue further legal remedies through Vietnam’s cassation or retrial procedures.
