A Vietnamese billionaire has been sentenced to death by a court in a landmark case of financial fraud. Real estate titan Troung My Lan, accused of multibillion-dollar embezzlement, has been given this penalty in one of the country's most significant financial fraud cases, affecting approximately 42,000 people. Join us in uncovering the narrative of this wealthy woman's rise and fall over a decade, as she forged an empire in the Real Estate sector and now faces the noose.
The 67-year-old billionaire’s 11 years of deceit
Vietnam’s Ho Chi Minh City saw the 67-year-old real estate tycoon, Troung My Lan, sentenced to death on Thursday after being found guilty of defrauding one of the country’s largest banks over 11 years. This decision is rare in the nation, where capital punishment isn’t uncommon. However, it marks the first instance of such a high-profile financial crime leading to the death penalty.
Delving into the fraud case, according to Forbes, Troung My Lan is a prominent businesswoman and president of the leading developer, Van Thinh Phat (VTP). Her company is attached to building luxury apartments, hotels, offices, and shopping malls. In October 2022, this billionaire was arrested on charges of financial fraud in the SCB Bank, followed by a lawsuit claiming $12.5 billion. However, the prosecution claims the scam cost the bank $27 billion.
Source: aajtak
A $44 billion loan swindle
Troung My Lan was found guilty of obtaining a $44 billion loan from Saigon Commercial Bank (SCB) and the court ordered her to repay $27 billion. Prosecutors indicated that this amount is unlikely to be recovered. During five weeks of hearings, it was established that Lan had illicitly controlled SCB Bank from 2011 to 2022, using it to facilitate financial fraud through her Ghost Firms.
The execution was cunningly carried out, with bribes offered to officials to cover their tracks. Prosecutors informed the court that Lan and her associates secured about 2,500 illegal loans worth billions of dollars for these fictitious companies, resulting in approximately $27 billion in losses for the bank.
The testimony of 200 lawyers and 2,700 individuals
Not only Lan but also 85 others may face charges for bribery and abuse of power, among other banking law violations, in this scandal. Some 42,000 victims have been identified by the police. Over a month-long trial, around 2,700 people were summoned for testimony, with 10 state prosecutors and about 200 lawyers participating. The evidence against Lan presented in court weighed six tons and filled 104 boxes. Ultimately, the court found Troung My Lan guilty of bribery, embezzlement, and violation of banking regulations, leading to a significant verdict.
From selling cosmetics on the streets to billionaire status
Troung My Lan, born in 1956 to a Sino-Vietnamese family in Ho Chi Minh City (formerly Saigon), has risen from modest beginnings to the pinnacle of wealth before facing the possibility of execution. She began her entrepreneurial journey by selling beauty products with her mother at local market stalls. However, seizing opportunities during the economic reform period known as Doi Moi in 1986 initiated by the Communist Party, Lan started dealing in real estate and other properties.
Source: aajtak
By the early '90s, she had amassed an extensive portfolio of hotels and restaurants. Then, in 1992, Troung, with her family, established Van Thinh Phat (VTP), a company that rapidly joined the ranks of the country's most valuable enterprises. Lan married prominent Hong Kong investor Erik Chu Nap-kee in the same year, and the couple has two daughters.
Will appeal against the decision!
Currently, many of Ho Chi Minh City’s most valuable buildings are owned by Lan’s company, Van Thinh Phat (VTP). Recent reports suggest a defiant Lan stating in her final court comments that she contemplated suicide out of desperation. ‘In my despair, I thought about suicide, I am so angry that I was foolish to get involved, with little knowledge,’ she said. However, according to a recent Reuters report, Lan’s lawyer Nguyen Huy Thiep confirmed that she will undoubtedly appeal against the judgment.
