Vietnamese Real Estate Tycoon Truong My Lan was Sentenced To Death in a Massive Financial Fraud Case on Thursday.
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“Truong My Lan Sentenced To Death” – Real estate Tycoon Truong My Lan faced a court ruling in Vietnam on Thursday. She was convicted in connection to a massive financial fraud case totaling 304 trillion dongs ($12.46 billion), the largest ever recorded in the country.
Truong My Lan, who is the chairwoman of a prominent real estate company called Van Thinh Phat Holdings Group, recently faced trial in Ho Chi Minh City. The trial began on March 5 and wrapped up earlier than anticipated. It garnered significant attention because it’s part of a broader effort led by Nguyen Phu Trong, the leader of Vietnam’s ruling Communist Party, to crack down on corruption.
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During the trial, Lan was found guilty of several serious charges, including embezzlement, bribery, and violating banking regulations. This means she was involved in unlawfully taking money, offering bribes to influence decisions, and breaking rules related to financial institutions.
The trial’s conclusion marks a significant milestone in Vietnam’s ongoing battle against corruption. Nguyen Phu Trong has long pledged to root out corruption within the government and business sectors, and Lan’s case is seen as a tangible result of these efforts.
By holding individuals like Lan accountable for their actions, Vietnam aims to create a more transparent and fair business environment, which is crucial for attracting investment and promoting sustainable economic growth.
The outcome of Lan’s trial sends a strong message that corruption will not be tolerated in Vietnam, and those who engage in illegal activities will face consequences. It’s a step forward in the country’s journey towards greater integrity and accountability in governance and business practices.
“We’re going to keep fighting and see what options we have,” a family member told Reuters anonymously. Earlier, before the verdict was announced, they had mentioned that Lan planned to appeal the sentence.
According to Nguyen Huy Thiep, one of Lan’s lawyers, Lan had pleaded not guilty to the charges of embezzlement and bribery.
“Of course, she will appeal the verdict,” Thiep added. Lan was sentenced to death for the embezzlement charge and to 20 years each for the other two charges of bribery and violating banking regulations.
In Vietnam, the death penalty is usually reserved for violent crimes, but it can also be imposed for economic offenses. Human rights organizations report that Vietnam has executed hundreds of convicts in recent years, primarily by lethal injection.
Thanh Nien newspaper reported that 84 defendants in the case received sentences ranging from three years of probation to life imprisonment. Among them, Lan’s husband, Eric Chu, a businessman from Hong Kong, was sentenced to nine years in prison, while her niece received a 17-year sentence.
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The Rise and Fall of Truong My Lan: A Tale of Corruption in Vietnam
Lan’s journey began as a cosmetics trader at Ho Chi Minh City’s central market, where she assisted her mother, as she recounted to the judges during the trial, as reported by state media.
In 1992, the same year she married, Lan established her real estate firm, Van Thinh Phat, according to state media.
Accompanied by her associates, Lan was found guilty of diverting over 304 trillion dong from Saigon Joint Stock Commercial Bank (SCB), which she effectively controlled through numerous proxies, despite regulations strictly limiting significant shareholding in financial institutions, as per investigators.
From early 2018 until October 2022, when Lan’s arrest triggered a run on SCB’s deposits leading to a state bailout, investigators allege she misappropriated substantial sums by orchestrating illicit loans to shell companies.
“The defendant’s actions not only violated the property rights of individuals and organizations but also subjected SCB to scrutiny, undermining public trust in the leadership of the Party and State,” stated the jury, as cited by state newspaper VnExpress.
Presently, the central bank is supporting SCB, which faces a complex restructuring. Authorities are working to ascertain the legal status of numerous assets used as collateral for loans and bonds issued by VTP, valued at $1.2 billion, including high-end properties and unfinished projects.
Before her downfall, Lan played a pivotal role in Vietnam’s financial sector, participating in the previous rescue of troubled SCB over a decade ago, before contributing to the bank’s latest crisis.
Lan was also found guilty of bribing officials to turn a blind eye, including allegedly paying $5.2 million to a senior central bank inspector, Do Thi Nhan, who received a life sentence.
Vietnam’s anti-corruption campaign, dubbed “Blazing Furnace,” has led to the prosecution or resignation of numerous senior state officials and prominent business figures.
Corruption remains pervasive, with reports indicating that in some provinces, individuals resort to bribery to access medical services in public hospitals, according to a recent survey by the U.N. Development Program and other organizations.
Truong My Lan News 2024
According to the official statement on the website, Truong My Lan is accused of orchestrating the creation of fraudulent loan applications to embezzle funds from Saigon Commercial Bank, of which she held ownership of over 90% of the shares.
The statement reports, “Between February 9, 2018, and October 7, 2022, Truong My Lan allegedly instructed the submission of 916 fictitious loan applications, resulting in the misappropriation of more than 304 trillion dong ($12.5 billion) from SCB.”
April 11, 2024 Real estate Tycoon Truong My Lan faced a court ruling in Vietnam on Thursday. She was convicted in connection to a massive financial fraud case totaling 304 trillion dongs ($12.46 billion), the largest ever recorded in the country. The Vietnamese court sentenced her to death.
Truong My Lan’s Information
| Category | Details |
|---|---|
| Real Name | Truong My Lan |
| Nick Name | Truong |
| Date of Birth | October 13, 1956 |
| Birthplace | Ho Chi Minh City, Vietnam |
| Height | 5’10” (1.78 m) |
| Figure Measurement | 36-32-36 |
| Weight | 60 kg |
| Eye Color | Black |
| Hair Color | Brown |
| Marital Status | Unknown |
| Boyfriend | None |
| Truong My Lan Husband | Chu Nap Kee |
| Children | chu duyet phan |