Vietnam sentences real estate tycoon Truong My Lan to death for committing the largest billion-dollar fraud in the country's history

A Vietnamese court on Thursday handed down a death sentence against real estate tycoon Truong My Lan after she was found guilty of a series of charges, including embezzlement, bribing government officials and violating bank lending rules.

The trial spanned five weeks and was held in Ho Chi Minh City, has been described as one of the most media-heavy in the country's history due to the profound impact Truong My Lan, founder of the Van Thing Phat Company (VTP), caused on Vietnam's financial and real estate industry. Local media called it the biggest fraud case ever seen in Vietnam.

Lan, 67, was accused of leading a massive fraud perpetrated at Saigon Commercial Joint Stock Bank (SCB), which looted over $12.5 billion, representing approximately 3% of Vietnam's Gross Domestic Product (GDP) in 2022. She allegedly used hundreds of shell companies as vehicles to channel funds out of the bank.

During the trial, compelling evidence suggested Lan's active participation in the fraudulent scheme, including her alleged indirect ownership of more than 90% of SCB and approving thousands of loans to shell companies that ultimately benefited her personal interests.

In closing, Lan expressed remorse for her actions, acknowledging venturing into an industry she did not master. However, the court handed down an unusually strict sentence, including 40 years in prison and an obligation to compensate the bank with $27 million.

Although the death penalty is not unusual in Vietnam for certain serious crimes, such as murder, armed robbery and drug trafficking, it is rarely applied for economic crimes. The last time it was imposed was in 2013 on two executives who were convicted of embezzlement.

The court also indicted dozens of accomplices, including her husband, Hong Kong investor Eric Chu, and her niece, VTP CEO Truong Hue Van. According to reports, Chu was sentenced to nine years for violating banking regulations, while Hue Van was sentenced to 17 years for embezzlement.

The Lan family founded VTP in 1992 and has risen to become one of Vietnam's most influential real estate developers. However, their success is now tarnished by the allegations of fraud and corruption that brought the tycoon and other members of her family before the court.