Vietnam Tycoon Faces Death Sentence in $12.5B Fraud Case

Vietnam upholds death sentence for business tycoon Truong My Lan, convicted of embezzling $12.5 billion in country's largest-ever fraud case.

A Vietnam court has upheld the death sentence of business tycoon Truong My Lan, chairwoman of Van Thinh Phat Holdings Group, following her unsuccessful appeal. Lan has been on death row since April for her role in Vietnam's largest-ever financial fraud case, involving the embezzlement of a staggering $12.5 billion (€11.9 billion).

This massive fraud scheme had far-reaching consequences, affecting Vietnam's entire economy. Prosecutors emphasized the severity of Lan's actions, stating, “The consequences Lan caused are unprecedented in the history of litigation, and the amount of money embezzled is unprecedentedly large and unrecoverable.” This statement underscores the significant impact of Lan's crimes on the country.

Lan's case is part of Vietnam's extensive anti-corruption campaign, dubbed “Blazing Furnace.” Despite her lawyer's efforts to highlight mitigating factors, such as her admission of guilt and partial repayment of the embezzled funds, the prosecution deemed these insufficient to warrant leniency.

“The defendant's actions have affected many aspects of society, the financial market, the economy,” highlighting the far-reaching consequences of Lan's actions.

Lan, a high-profile target of Vietnam's anti-graft campaign “Blazing Furnace,” was accused of illegally operating the Saigon Joint Stock Commercial Bank (SCB) from 2012 to 2022. Her actions led to approximately 2,500 questionable loans, resulting in staggering losses of $27 billion for the bank.

The repercussions of Lan's actions were felt across Vietnam's banking sector, significantly impacting the country's economy. This scandal also had a ripple effect on foreign investors, who were increasingly cautious about investing in Vietnam, particularly as the country sought to reduce its reliance on China and promote domestic business opportunities.

Trương Mỹ Lan is a Vietnamese businesswoman born on October 13, 1956, in what is now Ho Chi Minh City. She leveraged the economic shift towards free markets in the 1990s to establish Van Thinh Phat Holdings, which eventually led to her family controlling a vast portfolio of real estate across Vietnam, including residences, shopping centers, business properties, and hotels.

Lan's business empire expanded further in 2011 when she orchestrated the merger of SCB with two other lenders. However, prosecutors alleged that she utilized SCB to pay loans to “ghost companies” as a means to conceal bribe payments. The enormity of her crimes led to two separate trials.

In October, Lan received a life sentence for embezzling $1.2 billion from approximately 36,000 investors through the illegal issuance of bonds from several of her companies. Her lawyers appealed, citing mitigating circumstances that could potentially spare her from the death penalty. Nevertheless, the judges in Ho Chi Minh City upheld the death sentence.