Vietnam Court Hands Down Death Penalty to Real Estate Tycoon in $12 Billion Fraud Case
In a landmark ruling, the Ho Chi Minh City People’s Court in Vietnam has sentenced real estate tycoon Truong My Lan to death for her involvement in a massive $12 billion fraud case. The 67-year-old chairwoman of Van Thinh Phat Group was arrested in 2022 and charged with bribery of government officials and violation of bank lending rules.
The Largest Financial Fraud Case in Vietnam’s History
The verdict is one of the most severe punishments ever meted out for white-collar crime in Vietnam, capping the biggest financial fraud case in the country’s history. The total damages amount to approximately 3% of Vietnam’s GDP.
Charges and Evidence
My Lan was accused of embezzling funds from Saigon Commercial Bank (SCB) between February 2018 and October 2022. Prosecutors alleged that she took out $44 billion in loans from the bank between 2012 and 2022, holding a controlling stake of over 90% of the bank through proxies.
Similar Cases in Asia
The case is reminiscent of other high-profile real estate fraud cases in Asia, including those involving Country Garden Holdings chairwoman Yang Huiyan and Evergrande Group CEO Hui Ka Yan.
Defense Arguments
My Lan’s defense lawyers argued that she did not have an official position at SCB after a merger transaction in 2011. However, the court found that her actions constituted embezzlement, with damages exceeding $27 billion, a sum that exceeds the market capitalization of most Vietnamese banks.
Consequences and Reactions
The rare white-collar death penalty sentence has sparked panic among depositors of SCB, triggering a run on the bank and prompting the State Bank of Vietnam to take control of the lender. Vietnam’s anti-corruption campaign, launched in 2016, has resulted in numerous high-profile arrests and convictions.
Context and Implications
The country is also grappling with a severe housing market crisis, with real estate giants Country Garden Holdings and Evergrande Group facing major financial difficulties. The death penalty for white-collar crime is rare in Vietnam, but not unprecedented. In 2013, two former executives of Vietnam National Shipping Lines were found guilty of embezzlement and sentenced to death.