On April 11, 2024, Vietnamese real estate tycoon Truong Mei Lan (center) looked on at a court in Ho Chi Minh City. One of Vietnam’s top real estate tycoons could face the death penalty when she and dozens of other co-defendants face sentencing in Ho Chi Minh City on April 11. One of the largest fraud cases in the country, embezzling $12.5 billion.
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Vietnamese real estate tycoon Truong My Lan was sentenced to death on Thursday for his role in the country’s largest-ever financial fraud, state media Thanh Nien reported. report.
Lan was found guilty of corruption, bribery and violating bank lending rules. She was sentenced to death on the corruption charge and 20 years in prison each on two other charges, according to state media.
Lan, the chairman of real estate development company Van Thinh Phat Holdings Group, was accused of misappropriating assets from Saigon Joint Stock Commercial Bank (SCB) by providing illegal loans to Van Thinh Phat and shell companies.
Much of Lan’s defense is based on her lawyers’ arguments that she only controls about 15% of the bank and has no formal position in the bank, suggesting corruption charges are inappropriate, local media reported.
However, witnesses who own significant shares told the court they were instructed to act on behalf of Lan. According to local media reports, the judge therefore determined that Lan held more than 90% of the controlling stake in Standard Chartered Bank through agents and was the actual owner of the bank.
loan is It is said The total value is US$44 billion, accounting for more than 90% of Standard Chartered’s loans between 2012 and 2022. About $12.3 billion was said to have flowed into Van Thinh Phat, while other funds were used for private purposes. The judge found that Lan had fixed some of the problems on more than 1,000 loans, but the court said she must pay the bank full restitution.
Lan was first arrested in 2022 on charges dating back 10 years. In addition to Lan, more than 80 others, including central bank officials, have been charged for sabotaging Standard Chartered Bank, according to state media reports.
Reuters reported on Thursday that a family member of Lan confirmed that he would appeal the verdict.
CNBC could not independently verify the report.
The case against Lan is part of a broader anti-corruption operation led by Vietnam’s ruling Communist Party, known as “The Furnace.” Senior politicians, including Vietnam’s former president, were forced to resign over the movement, and hundreds of officials and businessmen were sentenced.
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