A Vietnamese court has upheld the death sentence for property tycoon Truong My Lan in connection with a massive fraud that defrauded the Saigon Commercial Bank (SCB) of $27 billion. Lan, 68, was convicted earlier this year for embezzling funds from the bank, which prosecutors claim she controlled. Despite her conviction, the court has offered a possibility for her sentence to be reduced if she repays a substantial portion of the stolen assets.
Lan's appeal against the death penalty was rejected in a Ho Chi Minh City court on Tuesday. The court determined that there was no valid reason to reduce her sentence. However, the judges did leave a door open for the tycoon to avoid execution. If she returns 75% of the embezzled assets, her sentence may be converted to life imprisonment.
This high-profile case has shocked the nation, with thousands of people who invested their savings in SCB losing money. The scandal has sparked rare protests from the victims, who are demanding justice. Lan, the founder of the Van Thinh Phat real estate group, has expressed remorse for the fraud. She told the court last week that the quickest way to repay the funds would be to liquidate SCB and sell off assets to repay the State Bank of Vietnam (SBV) and the public.
"I feel pained due to the waste of national resources," Lan said, adding that she felt "embarrassed" to face charges for the crime.
Lan's influence at SCB was far greater than what her ownership stake suggested. Although she officially held just 5% of shares, the court concluded that she effectively controlled over 90% of the bank through family members, friends, and staff. This manipulation allowed her to siphon off billions of dollars, leading to the widespread financial losses.
In response to the crisis, the State Bank of Vietnam had to inject funds into SCB to stabilize it, although the exact amount has not been disclosed. Lan and her real estate group own several high-value assets, including a shopping mall, a luxury housing complex, and a harbor in Ho Chi Minh City.
During her initial trial in April, Lan was found guilty of embezzling $12.5 billion. However, prosecutors argued that the total damages caused by the fraud were closer to $27 billion—around 6% of Vietnam's GDP for 2023. This extensive financial scheme has drawn attention as part of a broader anti-corruption crackdown in the country.
Lan's case is just one of many in the ongoing national corruption crackdown, which has seen dozens of officials and business elites arrested. A total of 47 other defendants, including senior central bank officials, have appealed for reduced sentences following their convictions.
In a separate legal matter, Lan was also sentenced to life imprisonment in another trial last month for money laundering. This adds to the mounting legal challenges the property magnate faces as she continues to fight the consequences of her actions.
