Vietnam real estate tycoon faces death penalty in $12.5B fraud case

Dec 3

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Craig Nigrelli Anchor

By Craig Nigrelli (Anchor), William Jackson (Producer), Kaleb Gillespie (Video Editor)

A Vietnamese court has upheld the death sentence for real estate tycoon Truong My Lan in one of the largest fraud cases in the country’s history. Lan, chairwoman of the Van Thinh Phat Group, was convicted of embezzling $12.5 billion through fraudulent schemes, disrupting Vietnam’s banking sector and raising concerns about financial oversight.

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Lan was found guilty of using her control of Saigon Commercial Bank (SCB) to issue more than 2,500 fraudulent loans through shell companies between 2012 and 2022. The embezzled amount represents nearly 3% of Vietnam’s gross domestic product in 2022.

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A court in Ho Chi Minh City rejected Lan’s appeal, stating that her sentence could be reduced to life in prison if she repaid at least $9 billion of the losses. Her lawyers claim that some assets have been returned, but disputes over property valuations have delayed further restitution.

Lan’s crimes extended beyond SCB. Authorities accused her of fraudulent bond schemes worth $1.2 billion involving 36,000 investors, siphoning $18 billion, and illegally transferring $4.5 billion internationally.

Van Thinh Phat Group, which Lan founded in 1992 during Vietnam’s transition to a market-oriented economy, became one of the country’s largest real estate firms. It developed luxury residential complexes, hotels and commercial properties, while her alleged control of SCB provided access to resources that funded fraudulent schemes benefiting her companies.

This case has significantly disrupted Vietnam’s banking sector, undermining public confidence and raising questions about financial oversight. Analysts view it as part of a broader anti-corruption campaign targeting high-profile figures in business and government.

Vietnam has intensified its efforts to combat corruption, with the death penalty being a possible sentence for crimes such as fraud and drug trafficking. Lan retains the option to seek a presidential pardon, which could result in a reduced sentence. The case remains a focal point in Vietnam’s efforts to address white-collar crime and restore trust in its financial systems.

Lan’s family members and associates, including her husband and niece, were also implicated in the scandal, with several receiving prison sentences. The case has drawn attention to the extent of corruption in Vietnam’s banking and real estate sectors, raising concerns among investors and citizens alike.

Tags: Banks, Economy, Fraud, Loans, Real estate, Tax Fraud, Vietnam

[craig nigrelli]

A VIETNAMESE REAL ESTATE TYCOON IS FACING THE DEATH PENALTY IN ONE OF THE LARGEST FRAUD CASES IN THE COUNTRY’S HISTORY. TRUONG MY LAN, CHAIRWOMAN OF THE VAN THINH PHAT GROUP, WAS CONVICTED OF EMBEZZLING $12.5 BILLION—AROUND 3% OF VIETNAM’S ENTIRE GDP IN 2022. SHE USED HER CONTROL OF SAIGON COMMERCIAL BANK TO ISSUE THOUSANDS OF FRAUDULENT LOANS THROUGH SHELL COMPANIES BETWEEN 2012 AND 2022.

A COURT IN HO CHI MINH CITY REJECTED HER APPEAL SAYING HER SENTENCE COULD BE REDUCED TO LIFE IN PRISON IF SHE REPAYS AT LEAST $9 BILLION. HER LAWYERS CLAIM SHE’S RETURNED SOME ASSETS, BUT DISPUTES OVER PROPERTY VALUATION ARE COMPLICATING THE CASE.

LAN’S COMPANY, VAN THINH PHAT, WAS FOUNDED IN 1992 DURING VIETNAM’S TRANSITION TO A MARKET-ORIENTED ECONOMY. HER COMPANY BECAME ONE OF VIETNAM’S LARGEST REAL ESTATE FIRMS, DEVELOPING LUXURY RESIDENTIAL COMPLEXES, HOTELS, AND COMMERCIAL PROPERTIES. HER ALLEGED CONTROL OF SCB ALLOWED ACCESS TO RESOURCES THAT FUNDED FRAUDULENT SCHEMES BENEFITING HER COMPANIES.

LAN WAS FOUND GUILTY OF FRAUDULENT BOND SCHEMES WORTH $1.2 BILLION FROM 36,000 INVESTORS, SIPHONING $18 BILLION, AND ILLEGALLY TRANSFERRING $4.5 BILLION INTERNATIONALLY.

THESE ACTIONS HAVE SIGNIFICANTLY DISRUPTED VIETNAM’S BANKING SECTOR, UNDERMINING PUBLIC CONFIDENCE AND RAISING QUESTIONS ABOUT FINANCIAL OVERSIGHT. ANALYSTS VIEW THE CASE AS PART OF A BROADER ANTI-CORRUPTION CAMPAIGN KNOWN AS “BLAZING FURNACE” TARGETING HIGH-PROFILE FIGURES IN BUSINESS AND GOVERNMENT.

THE CASE REFLECTS VIETNAM’S INTENSIFIED EFFORTS TO ADDRESS CORRUPTION, WHERE THE DEATH PENALTY IS APPLIED TO CRIMES SUCH AS FRAUD AND DRUG TRAFFICKING. LAN’S CASE REMAINS UNDER SCRUTINY AS SHE HAS THE OPTION TO SEEK A PRESIDENTIAL PARDON, DRAWING ATTENTION TO THE COUNTRY’S APPROACH TO WHITE-COLLAR CRIME.

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