Who Is Truong My Lan? Vietnamese Billionaire Sentenced To Death For Fraud

Truong My Lan, a well-known Vietnamese property tycoon and chairwoman of Van Thinh Phat Holdings Group, faced a critical moment on April 11, 2024, as she stood trial in a Ho Chi Minh City courtroom. She was condemned to the ultimate penalty: death, for orchestrating one of the nation's largest financial frauds. Her status as one of the few women in Vietnam to face the death penalty for a white-collar crime adds to the dimension of the case, highlighting its exceptional nature and the magnitude of the fraud in question.

Vietnamese Property Tycoon Sentenced to Death in Financial Fraud Case

Truong My Lan, aged 67 and the chair of the real estate giant Van Thinh Phat, faced charges of fraud amounting to a staggering $12.5 billion, a figure that accounts for nearly 3% of Vietnam's 2022  Gross Domestic Product (GDP).

Truong My Lan's path to this harsh verdict involved accusations of embezzlement, bribery, and breaking banking rules on loans. The court found her guilty on several charges, giving her the death penalty for embezzlement, and also ordered Lan to pay the bank $26.9 million in compensation.The state media reported that she also received a 20-year prison sentence for each of the other charges.

The crux of the issue was the accusation that Lan unlawfully took assets from Saigon Joint Stock Commercial Bank (SCB) by arranging dodgy loans to her company, Van Thinh Phat, and other shell firms. It was revealed that Lan, using her position  as chairwoman, set up a plan that reportedly led to the misuse of a whopping $44 billion. These funds, which made up more than 90% of SCB's lending from 2012 to 2022, supposedly went to her real estate business and for her personal benefit.  She managed a network of 2,500 loans that caused the bank to lose $27 billion.

In her defense, Lan's lawyers strongly argued that she owned just a small part, about 15%, of SCB and didn't have any official role in the bank's leadership. But the prosecution put forth convincing evidence to the contrary. Witnesses testified they followed Lan's orders, showing she actually controlled the bank indirectly, possibly owning more than 90% through proxies. This revelation broke down her defense with evidence from 2,700 people, 10 state prosecutors, and about 200 lawyers,, leading the court to believe she was the key person behind the fraudulent actions at SCB.

Truong My Lan's sentencing isn't an isolated event; it reflects Vietnam's determined fight against corruption across society. This intense effort, dubbed the "blazing furnace," has led to the downfall of many high-ranking officials and business leaders, showing a big change in Vietnam's approach to governance and responsibility.