Vietnam Hands Down Death Sentence to Real Estate Tycoon in Largest-Ever Financial Fraud Case
Hanoi - A Move Against Corruption
In a significant move aimed at cracking down on corruption, Vietnam’s courts have sentenced 67-year-old real estate tycoon Tru’o’ng Mỹ Lan to death for her role in a massive financial fraud scheme that has caused billions of dollars in damages.
The Largest-Ever Financial Fraud Case
Lan, the founder of Vạn Thịnh Phát Group, was arrested last October and charged with embezzling $12.5 billion from Saigon Commercial Bank (SCB) over a decade after arranging a 2011 merger. Prosecutors allege that the total damages caused by the scam now amount to a staggering $27 billion, equivalent to 6% of Vietnam’s 2023 gross domestic product.
The Scale of the Fraud
The court ordered Lan to pay almost the entire damages sum in compensation, with authorities revealing that she had ordered her driver to withdraw over $4 billion in cash from the bank and store it in her basement. The sheer scale of the fraud has left many ordinary people struggling to recover their losses, including 67-year-old Hanoi resident Nga, who told AFP:
“I hope she can’t sleep well at night knowing what she did,” said Nga, using a pseudonym to protect her identity. “She took our money and now she’s getting the death sentence. It’s not fair.”
Vietnam’s Strict Approach to Crime
Vietnam is known for its strict approach to crime, with human rights advocates considering it a global leader in death penalty sentences and executions. According to Amnesty International:
- At least 102 people were sentenced to death in Vietnam last year.
- Over 1,200 people are currently on death row.
Critics of the Death Penalty
Critics argue that the use of the death penalty is intended to intimidate those who would break the law, rather than serve as a deterrent or promote justice. Phil Robertson, deputy director at Human Rights Watch, said:
“The death penalty in Vietnam is used to show the power of the ruling party,” said Robertson. “It’s a government that chases down dissidents and runs roughshod over civil society.”
Anti-Corruption Campaign
Lan’s case is part of an ongoing anti-corruption campaign spearheaded by Vietnamese President Nguyễn Phú Trọng, who has seen multiple top officials resign or face trial in recent months.
Unprecedented Transparency
The case against Lan and her co-defendants has been unprecedented in its scope and transparency, with authorities releasing detailed evidence and testimony to the media. Of the 85 defendants tried alongside Lan:
- Four received life sentences.
- The rest were given prison terms ranging from 20 years to three years suspended.
This landmark case is a significant move by Vietnam’s government to combat corruption and ensure accountability for those who engage in illegal activities.