“Vietnam’s Largest Fraud Case: Billionaire Faces Death Penalty”
In what has been termed as one of Vietnam’s most significant fraud cases, Truong My Lan, the chair of major developer Van Thinh Phat, and 85 other co-accused individuals are awaiting verdicts and possible sentencing on Thursday. The case revolves around the alleged embezzlement of a staggering $12.5 billion from Saigon Commercial Bank (SCB) over a period of ten years.
In what has been termed as one of Vietnam’s most significant fraud cases, Truong My Lan, the chair of major developer Van Thinh Phat, and 85 other co-accused individuals are awaiting verdicts and possible sentencing on Thursday. The case revolves around the alleged embezzlement of a staggering $12.5 billion from Saigon Commercial Bank (SCB) over a period of ten years.
The charges against Truong My Lan and others include bribery, abuse of power, appropriation, and violations of banking law. Prosecutors have even called for the death penalty for Lan, which is an exceptionally severe punishment in such financial fraud cases.
Lan has denied the accusations, attributing the wrongdoing to her subordinates. However, prosecutors argue that she played a central role in orchestrating the scam, which has affected around 42,000 victims, mainly SCB bondholders who have been unable to access their funds or receive interest payments since Lan’s arrest in October 2022.
The fraud scandal has shocked Vietnam, prompting protests in Hanoi and Ho Chi Minh City, despite the heavy police presence during the trial proceedings. The case has shed light on the corrupt practices within the banking sector, with allegations of bribes amounting to $5.2 million given to state officials to conceal the bank’s financial violations.
Truong My Lan, who is also married to a wealthy Hong Kong businessman facing trial, is accused of creating fake loan applications to siphon funds from SCB, where she held a 90 percent stake. The alleged asset appropriation, which occurred between 2012 and 2022, amounts to about three percent of Vietnam’s GDP in 2022.
During the trial, prosecutors revealed that they had seized over 1,000 properties belonging to Lan as part of the investigation. Additionally, the case highlighted the largest bribe recorded in Vietnam, involving millions of dollars exchanged to conceal SCB’s financial misconduct.
This high-profile case is part of Vietnam’s broader corruption crackdown, with thousands of individuals indicted across multiple graft cases since 2021. It underscores the challenges faced in tackling financial fraud and corruption within the country’s business and banking sectors.
Sources By Agencies
About The Author
