Vietnam’s real estate tycoon Truong My Lan was sentenced to death in a fraud case. Who is she, the case – All you need to know
In a dramatic turn of events, Truong My Lan, a prominent figure in Vietnam’s real estate sector, has been handed a death sentence in what is being hailed as the country’s largest financial fraud case to date. Lan, the 67-year-old chairwoman of Van Thinh Phat, a renowned real estate company, was found guilty of orchestrating a massive embezzlement scheme totaling a staggering $12.5 billion, nearly 3 percent of Vietnam’s GDP in 2022.
The verdict, delivered on Thursday, has sent shockwaves throughout the nation, marking a rare instance of the death penalty being imposed in a financial crime case, especially one involving such a high-profile individual.
Accompanying Lan in this legal saga is her niece, Truong Hue Van, who served as the chief executive of Van Thinh Phat. Van was sentenced to 17 years in prison for her role in aiding Lan’s fraudulent activities.
What is Truong My Lan accused of?
The allegations against Lan date back to the 2011 merger of the troubled Saigon Joint Commercial Bank (SCB) with two other lenders, a move orchestrated by Vietnam’s central bank. Lan stands accused of exploiting her position to siphon funds from SCB for personal gain, exerting illegal control over the bank from 2012 to 2022. Utilizing a network of “ghost companies” both domestically and internationally, Lan allegedly issued fraudulent loans to herself and her associates, resulting in staggering losses amounting to $27 billion.
Moreover, court documents revealed Lan’s involvement in bribery, including payments made to government officials, further tarnishing her reputation and undermining public trust in the leadership of the Communist party and the state.
Who is Truong My Lan?
Truong My Lan’s journey from a cosmetics seller at Ho Chi Minh City’s oldest market to a powerhouse in Vietnam’s real estate industry is a tale of ambition and wealth. Born in 1956, Lan assisted her Chinese mother in the cosmetics trade before venturing into real estate in 1992. Together with her family, she founded Van Thinh Phat, which quickly rose to prominence, boasting prime properties such as the Times Square Saigon, Windsor Plaza Hotel, Capital Place office building, and Sherwood Residence Hotel.
Despite her meteoric rise, Lan’s legacy will forever be marred by the staggering fraud case that has now culminated in her sentencing to death, underscoring Vietnam’s commitment to combatting corruption and holding even the most powerful individuals accountable for their actions.
As the nation grapples with the aftermath of this landmark trial, questions linger about the broader implications for Vietnam’s business landscape and the efficacy of its legal system in deterring future financial crimes.
