A Vietnamese court has confirmed the death penalty for a property mogul involved in a multibillion-dollar fraud case – yet indicated her life might still be spared if she reimburses three-quarters of the assets she misappropriated.
Truong My Lan, 68, a property developer, was convicted this year of deceiving Saigon Commercial Bank (SCB) – which prosecutors claimed she managed – and was sentenced to death for fraud amounting to $27 billion.
Despite her appeal during a month-long trial, the court in Ho Chi Minh City ruled there was “no basis” to lessen her sentence.
Nevertheless, there remains a possibility for Lan to avoid the death penalty.
Her spouse, Eric Chu Nap Kee, a billionaire from Hong Kong, saw his sentence decreased from nine years to seven.
Thousands of individuals who invested their savings in SCB suffered financial losses, shocking the communist nation and sparking rare protests from affected victims.
Lan, who established the real estate development firm Van Thinh Phat, previously stated in court that “the quickest way” to repay the embezzled funds would be by “liquidating SCB and selling our assets to repay the SBV (State Bank of Vietnam) and the public”.
“I am distressed by the waste of national resources,” Lan expressed last week, adding that she felt “deeply embarrassed to be charged with this crime”.
Her defense team argued that she had already reimbursed the necessary amount to qualify for a sentence reduction.
Lan has surrendered over 600 family properties to the court, which it acknowledged – although the total value of these assets remains unclear.
Lan’s attorney informed AFP that it would likely take years before she faces execution, which is carried out via lethal injection in Vietnam.
Harbour, luxury residences
Officially, Lan owned only 5% of shares in SCB, but during her trial, the court concluded that she effectively controlled over 90% through family, associates, and staff.
In April, a former chief inspector of the State Bank received a life sentence for accepting a bribe of five million dollars to ignore financial issues at SCB. The court reaffirmed this sentence on Tuesday.
The bank stated in April that it injected funds into SCB for stabilization purposes but did not disclose the amount.
Among the assets owned by Lan and Van Thinh Phat are a shopping center, a port, and luxurious residential complexes in the economic center of Ho Chi Minh City.
During her initial trial in April, Lan was found guilty of embezzling $12.5 billion, but prosecutors asserted that the total damages from the fraud reached $27 billion – equivalent to approximately 6% of Vietnam’s GDP for 2023.
Lan, along with several others, including senior central bank officials, was arrested in a nationwide anti-corruption initiative referred to as the “burning furnace,” which has implicated numerous officials and figures from Vietnam’s business elite.
Besides Lan, 47 other defendants applied for reduced sentences during the appeal.
Last month, Lan was found guilty of money laundering and sentenced to life imprisonment in a separate case.
