Financial Crime World

Vietnamese Fraudster’s $12 Billion Heist: Where’s the Money Now? Hong Kong Under Scrutiny

The staggering $12 billion fraud orchestrated by Vietnamese national Truong My Lan and her associates has left authorities and financial institutions in Vietnam and abroad questioning their ability to combat financial crime effectively. Reports suggest that large portions of the proceeds from this fraud have been making their way to the international financial hub of Hong Kong.

Identified Assets in Hong Kong

Ms. Lan’s husband, Eric Chu Nap Kee, a Cantonese Chinese businessman from Hong Kong, is believed to have significant assets in the city. These assets include:

  • The Nexxus Building: Sold for US$819 million in Central District.
  • A hotel project: Sold for around US$14.5 million in King’s Road, Tin Hau.
  • A commercial/residential site: Sold for around US$55 million on Finney Street, Quarry Bay.
  • A house: Sold for US$38 million on the Peak, Hong Kong Island.

Additional Investments

Alongside these identified assets, Chu reportedly still holds significant investments in Hong Kong. These include:

  • The Wellington office tower: Purchased for US$380 million in Sheung Wan in 2017.
  • Luxury residences: In the Peak and Mid-Levels areas, reportedly exceeding US$250 million in total value.
  • Properties held under family names:

Urging for Investigations

Authorities in Vietnam and Hong Kong have been urged to investigate these transactions to determine if they are proceeds of crime. Under Hong Kong law, dealing with property known or having reasonable grounds to believe is proceeds of an indictable offense may be considered a money laundering offense.

Dr. Lee George Lam

A former high-ranking Hong Kong official, Dr. Lee George Lam, is also linked to the case. He is currently wanted by Vietnamese authorities on an arrest warrant in connection with the crimes committed by Truong My Lan and her associates. Dr. Lam has denied any involvement in these crimes but was a former board member of Saigon Commercial Bank, previously controlled by Lan.

Precedent of Successful Investigations

The potential laundering of the $12 billion in proceeds of crime through the Hong Kong financial system highlights the importance of local authorities and financial institutions being vigilant and responsive to money laundering concerns. Past successful investigations in Hong Kong have led to convictions of individuals laundering funds generated from illegal activities in other jurisdictions, despite the original crimes taking place elsewhere.

2000: Yeung Chun Pong Case

For example, in 2000, Yeung Chun Pong and his associates were convicted of illegal bookmaking offenses in Macau. The proceeds of their criminal enterprise were laundered through Hong Kong, resulting in their being charged and convicted under Hong Kong’s money laundering laws.

Protecting Hong Kong’s Financial System

With the potential involvement of significant funds from the Truong case in Hong Kong, local authorities and financial institutions must act swiftly and firmly to protect the financial system. It is crucial that they meet their legal and ethical obligations in the fight against financial crime.

Maintaining Hong Kong’s Reputation

This also reinforces Hong Kong’s commitment to addressing financial crime issues while maintaining its reputation as a trusted international financial hub.