In a landmark verdict, real estate magnate Truong My Lan received the death penalty from a court in Ho Chi Minh City, marking Vietnam's largest financial fraud case, as reported by state media Vietnam Net.
Lan, aged 67 and chair of Van Thinh Phat real estate company, faced charges of orchestrating a fraud amounting to $12.5 billion, approximately 3% of the country’s 2022 GDP.
During her tenure from 2012 to 2022, Lan unlawfully controlled Saigon Joint Stock Commercial Bank, approving 2,500 loans that led to a staggering $27 billion loss for the bank, according to VnExpress. The court ordered her to compensate the bank with $26.9 million.
Despite Lan's involvement in charity work and it being her first offense, the severity of the case led to the harsh sentence. The court described her as the mastermind behind a sophisticated criminal network with irrecoverable consequences, eroding public trust in the Party and State leadership.
Her niece, Truong Hue Van, CEO of Van Thinh Phat, received a 17-year prison sentence for aiding Lan.
Lan's rise from humble beginnings, assisting her mother in selling cosmetics, to establishing a thriving real estate empire was notable. Her company, Van Thinh Phat, became one of Vietnam’s wealthiest real estate firms, playing a pivotal role in the country's financial landscape.
However, Lan's methods came under scrutiny during the trial. She allegedly exploited her influence to siphon funds from SCB, using ghost companies to channel loans back to herself, as per VNExpress.
Former central bank official Do Thi Nhan also faced consequences, receiving a life sentence for accepting bribes.
Lan's arrest in October 2022 was a significant development in Vietnam's anti-corruption campaign, which intensified since 2022. The repercussions of her trial reverberated throughout the nation, casting doubts on the integrity of other financial institutions and dampening Vietnam's economic prospects.
The real estate sector bore the brunt of the fallout, with numerous firms exiting the market in 2023, and property vacancies rising in Ho Chi Minh City despite rent reductions.
Communist Party General Secretary Nguyen Phu Trong affirmed the long-term commitment to combat corruption, signaling continued efforts in the aftermath of Lan's trial.
