Real Estate Tycoon Sentenced to Death in Vietnam’s Largest Financial Fraud Case
HANOI, Vietnam (AP) — Real estate tycoon Truong My Lan was sentenced to death by a court in Ho Chi Minh City in southern Vietnam in the country’s largest financial fraud case ever, state media Vietnam Net reported.
The 67-year-old chair of the real estate company Van Thinh Phat was charged with fraud amounting to $12.5 billion, nearly 3% of the country’s 2022 GDP. Lan illegally controlled Saigon Joint Stock Commercial Bank between 2012 and 2022, allowing 2,500 loans that resulted in losses of $27 billion to the bank.
Despite being a first-time offender and participating in charity activities, Lan was handed a harsh sentence due to the seriousness of the case. The court described her actions as part of an orchestrated and sophisticated criminal enterprise with no possibility of the money being recovered.
Her niece, Truong Hue Van, and husband, Eric Chu Nap-kee, were also sentenced to prison for aiding Lan in the fraud. Lan’s arrest in October 2022 was part of an anti-corruption drive in Vietnam, which has intensified since 2022.
The scandal has raised concerns about the integrity of other banks and businesses in Vietnam, impacting the country’s economic outlook and making foreign investors wary. The real estate sector has been hit hard, with many firms withdrawing from the market and properties remaining empty in major cities.
The case has sent shockwaves through Vietnam, prompting Communist Party General Secretary Nguyen Phu Trong to vow that the anti-corruption fight will continue for the long term.