A Vietnamese court sentenced real estate mogul Truong My Lan to death for her role in a $12.5 billion fraud, marking the country’s largest financial scam.
The court hearing started on March 5 and concluded earlier than scheduled; this trial highlights an ongoing anti-corruption drive led by Communist Party chief Nguyen Phu Trong.
Lan, head of Van Thinh Phat Holdings Group, faced charges of embezzlement, bribery, and banking violations in Ho Chi Minh City, with state media confirming her guilt. Despite her not-guilty plea, her lawyer, Nguyen Huy Thiep, indicated plans to appeal her death sentence and additional 20-year terms for the other charges.
Human rights organizations criticize Vietnam’s use of the death penalty, often for economic crimes, with numerous executions reported in recent years. Meanwhile, Fast Retailing recently announced a 7% profit increase in its second quarter.
The case involved 84 defendants, with sentences ranging from probation to life imprisonment. Lan’s husband received a nine-year sentence, while her niece was sentenced to 17 years.
Lan’s career began in cosmetics sales in Ho Chi Minh City and progressed to founding her real estate firm in 1992. She was convicted of diverting over 304 trillion dong from Saigon Joint Stock Commercial Bank (SCB), which she controlled through proxies. This mismanagement led to a state bailout of SCB in 2018 after a run on its deposits.
According to VnExpress, her actions compromised SCB and eroded public trust. The bank is now undergoing a complex restructuring to determine the legal status of assets used as loan collateral.
Lan, previously instrumental in SCB’s rescue efforts, was also found guilty of bribing officials, including a $5.2 million payment to a central bank inspector, who received a life sentence. The crackdown on corruption in Vietnam, known as “Blazing Furnace,” has led to the prosecution of numerous officials and executives. A recent UN survey highlighted pervasive bribery in public services, including healthcare.
