Vietnamese property tycoon Truong My Lan has been handed a severe sentence for her involvement in a major financial fraud case in Vietnam. She was found guilty of embezzlement, bribery, and violating banking rules related to lending. The court sentenced her to death for the embezzlement charges and 20 years in prison for each of the other two accusations.
Lan, who serves as the chairwoman of real estate development firm Van Thinh Phat Holdings Group, was accused of embezzling assets from Saigon Joint Stock Commercial Bank by securing unlawful loans for her companies. Despite her defense claiming that she only controlled a small percentage of the bank and did not hold an official position, witnesses testified that they were instructed to act on her behalf. Judges concluded that Lan had a controlling stake of over 90% in the bank through proxies and was the de facto owner.
The loans obtained by Lan reportedly amounted to $44 billion and made up more than 90% of SCB’s lending activities between 2012 and 2022. A significant portion of these funds, around $12.3 billion, was funneled to Van Thinh Phat, while the rest was used for personal gain. While some of the loans were repaid by Lan, the court ruled that she must fully compensate the bank for the losses incurred.
Truong My Lan’s arrest in 2022 marked the beginning of a legal battle that uncovered alleged wrongdoing dating back a decade. Alongside Lan, more than 80 other individuals, including central bank officials, have faced charges in connection with the case. Despite the harsh sentence, it has been reported that Lan intends to appeal the decision.
This high-profile case is part of a broader crackdown on corruption led by Vietnam’s ruling Communist party, known as the “blazing furnace” campaign. The campaign has seen numerous officials and business figures prosecuted for fraudulent activities, underscoring the government’s commitment to rooting out corruption at all levels.
Truong My Lan’s conviction highlights the far-reaching consequences of financial malpractice in Vietnam. As the country continues its efforts to stamp out corruption, cases like Lan’s serve as a stark reminder of the importance of integrity and transparency in the financial sector.
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