Vietnamese Tycoon Sentenced to Death for $27 Billion Money Laundering Scam

In a landmark corruption case, a Vietnamese property mogul, Truong My Lan, was sentenced to death on Thursday, May 25, 2023, for embezzling an estimated $27 billion from Saigon Commercial Bank (SCB) over a decade.

Lan’s Crime and Conviction

The panel of five judges, comprising of three jurors and two judges, dismissed all defence arguments presented by Lan, 67. The top developer of major firm Van Thinh Phat had been accused of swindling cash from SCB, in which she held a 90% stake, by setting up fake loan applications.

Victims and Damages

Over 42,000 victims, predominantly SCB bondholders, have reportedly been identified in the ongoing scandal. The total damages amounted to an astonishing six percent of Vietnam’s projected 2023 GDP – $27 billion.

Sentences for Other Accused

Alongside Lan, 85 others were also sentenced for various charges, including bribery, abuse of power, appropriation, and violations of banking law. Four of these individuals were given life imprisonment sentences, while jail terms ranged from 20 years to three years suspended. Lan’s husband, Hong Kong billionaire Eric Chu Nap Kee, was handed a nine-year term.

Severe Penalty and Vietnam’s Anti-Corruption Crackdown

The death sentence – an unusually severe punishment for such cases – is reflective of Vietnam’s status as one of the world’s leading executioners, according to Amnesty International. Over the last few years, Vietnam has intensified its national anti-corruption crackdown, with Lan and other high-profile figures falling under scrutiny.

Protests and Public Outrage

Following her arrest in October 2022, protests erupted in the capital Hanoi and Ho Chi Minh City: a rarity in the one-party communist state. Hundreds of people took to the streets in hopes of witnessing justice for the ordinary people affected by the scandal.

Seized Properties and Bribes

Police have reportedly seized over 1,000 properties belonging to Lan as part of the investigation, and $5.2 million in bribes to state officials to conceal the poor financial situation of the bank. Do Thi Nhan, the former head of the State Bank of Vietnam’s inspection team, was sentenced to life imprisonment for receiving these bribes, with millions of dollars delivered to her in Styrofoam boxes.

Previous Convictions in Vietnam’s Anti-Corruption Crackdown

Since 2021, over 4,400 individuals have been indicted during Vietnam’s anti-corruption crackdown, which has encompassed more than 1,700 cases. Earlier this year, a leading Vietnamese luxury property tycoon, Do Anh Dung of the Tan Hoang Minh group, was handed an eight-year prison sentence for his role in a $355 million bond scam.