Involved In The Largest Fraud Case, Vietnam Property Conglomerate Sentenced To Death

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Vietnamese property conglomerate Truong My Lan was sentenced to death on Thursday, April 14, 2023 local time. The sentence was given for his involvement in the country's largest financial fraud case. Quoting from Reuters, Friday, April 12, Lan and his agents were accused of being involved in a case of financial fraud worth US$12.46 billion or around Rp200 trillion (exchange rate of Rp. 16,000). The trial, which began on March 5, 2024 at the Ho Chi Minh City People's Court, ended earlier than planned. This is one of the dramatic results of the campaign against corruption that the ruling Communist Party leader Nguyen Phu Trong has promised for years to eradicate. Local state media reported Lan was found guilty of embezzlement, bribery and violations of banking regulations surrounding lending. Apart from being sentenced to death on charges of embezzlement, he was charged with two other charges with 20 years in prison. "We will continue to struggle to see what we can do," a family member told Reuters, speaking without his name. Before the verdict was handed down, he said Lan would appeal the sentence. Lan has pleaded not guilty to charges of embezzlement and bribery, Nguyen Huy Thiep, one of Lan's lawyers told Reuters. It is known that Lan is the head of the real estate development company Van Thinh Phat Holdings Group. He is accused of taking over assets from the Joint Commercial Bank of Shares Saigon or Saigon Joint Stock Commercial Bank (SCB) by taking illegal loans to Van Thinh Phat and the shell company. Most of Lan's defense is based on his lawyer who argues that he only controls about 15 percent of the bank and does not have an official position in the bank, thus suggesting that allegations of embezzlement are inappropriate. However, witnesses who own large shares told the court that they were ordered to act on behalf of Lan. Therefore, the judge decided that Lan holds a controlling stake of more than 90 percent in SCB through his power and is the owner of the bank's de facto. The loan is reportedly worth a total of 44 billion US dollars and accounts for more than 90 percent of SCB loans between 2012 and 2022. It is estimated that 12.3 billion US dollars was allegedly distributed to Van Thinh Phat, while other funds were used privately. There are more than 1,000 loans that have been repaid by Lan according to the judge. However, the court said he had to provide full compensation to the bank. Reuters also reported that in addition to Lan, more than 80 other people including central bank officials have been indicted.

High-level politicians including former Vietnamese president have been forced to resign in connection with the case. Not to forget, hundreds of officials and businessmen have also been sentenced.