HANOI Real Estate Tycoon Sentenced to Death in Vietnam’s Largest Financial Fraud Case
HANOI, Vietnam – In a verdict that has shocked the nation, real estate tycoon Truong My Lan has been sentenced to death by a court in Ho Chi Minh City. This comes as a result of her involvement in Vietnam’s largest financial fraud case to date. Lan, the 67-year-old chair of the real estate company Van Thinh Phat, has been charged with fraud amounting to $12.5 billion.
Vietnam’s Largest Financial Fraud Case
The prosecution revealed that Lan illegally controlled Saigon Joint Stock Commercial Bank (SCB) from 2012 to 2022, authorizing 2,500 loans that led to a staggering $27 billion in losses for the bank. In addition, Lan has been ordered to compensate the bank $26.9 million.
The court justified its harsh sentence by defining Lan’s actions as a part of an orchestrated and sophisticated criminal enterprise that had severe repercussions, making it impossible to recover the funds. The judgement stated, “Her actions not only violate the property management rights of individuals and organizations but also push SCB into a state of special control, eroding people’s trust in the leadership of the Party and State.”
Family Involvement and Business Success
Lan’s involvement was shared with her niece, Truong Hue Van, the chief executive of Van Thinh Phat, who has been sentenced to 17 years in prison for aiding her aunt. Lan’s husband, Eric Chu Nap-kee, also received a sentence of nine years in prison.
Lan established the Van Thinh Phat company in 1992, building it into one of Vietnam’s most successful real estate firms with a diverse portfolio of luxury residential buildings, offices, hotels, and retail centers. Contributing towards the nation’s financial industry, Lan coordinated the merger of SCB with two other banks in 2011 under the supervision of Vietnam’s central bank.
A National Scam Raises Concerns
The magnitude of Lan’s scam has raised concerns about the integrity of other banks and businesses in Vietnam. This has had a dampening effect on Vietnam’s economic outlook and heightened the hesitancy of foreign investors. The ongoing anti-corruption campaign in Vietnam, referred to as the Blazing Furnace, has exposed corruption within the highest levels of Vietnamese politics, resulting in significant resignations.
The real estate sector in Vietnam, in particular, has been significantly affected. The market experienced the withdrawal of around 1,300 property firms in 2023. Desperate to attract buyers, developers have resorted to offering discounts and gifts of gold. Despite rental prices falling by a third for shophouses in Ho Chi Minh City, the central area remains largely unoccupied.
Communist Party General Secretary Nguyen Phu Trong has stressed the importance of a continued anti-corruption fight in Vietnam, outlining its longevity and ongoing nature.
