Vietnam sentences Billionaire woman to death for Fraud

A court in Vietnam has delivered a verdict of death against Truong My Lan, a prominent figure in the country’s real estate sector, for her involvement in a staggering 304 trillion dong ($12.46 billion) financial fraud scheme, the largest of its kind in Vietnam’s history, according to state media reports.

Truong My Lan, the chairwoman of Van Thinh Phat Holdings Group, a major real estate developer, was convicted of embezzlement, bribery, and breaches of banking regulations following a trial that commenced on March 5 and concluded earlier than anticipated.

The trial, held in the business hub of Ho Chi Minh City, unfolded as part of a wider anti-corruption campaign spearheaded by Nguyen Phu Trong, the leader of Vietnam’s ruling Communist Party.

State media disclosed that Truong My Lan, who pleaded not guilty to the charges of embezzlement and bribery, received a death sentence for embezzlement and 20-year prison terms for both bribery and banking regulation violations.

Despite the verdict, Lan’s family member, speaking anonymously to Reuters, affirmed their determination to pursue legal avenues, indicating an intention to appeal the judgment.

The case implicated 84 defendants, with sentences ranging from probation to life imprisonment. Among them was Lan’s husband, Eric Chu, a Hong Kong-based businessman, who received a nine-year jail term, along with Lan’s niece, who was sentenced to 17 years.

Lan’s ascent from a cosmetics trader at Ho Chi Minh City’s central market to a prominent real estate magnate was outlined during the trial.

She founded Van Thinh Phat in 1992, coinciding with her marriage, and allegedly orchestrated the misappropriation of funds from Saigon Joint Stock Commercial Bank (SCB), which she purportedly controlled through numerous proxies.

Investigators asserted that Lan and her associates illicitly funneled billions of dong from SCB between early 2018 and October 2022, culminating in the bank’s bailout due to a run on deposits triggered by Lan’s arrest.

Her actions were condemned by the court, with jurors highlighting the erosion of public trust in the Party and State leadership. Lan was also found guilty of bribery, including payments to senior central bank officials to avert scrutiny.

The case underscores Vietnam’s ongoing crackdown on corruption, termed “Blazing Furnace,” which has targeted numerous state officials and business figures.