Vietnamese Business Tycoon Truong My Lan Loses Appeal in World's Largest Bank Fraud Case
Truong My Lan, a 68-year-old influential Vietnamese property magnate, has lost her appeal against the death sentence she received for masterminding the world’s largest bank fraud. The former chairwoman of the Van Thinh Phat Group, once one of Vietnam’s most powerful business figures, is now racing against time to repay a staggering $9 billion to reduce her death sentence to life imprisonment.
A Journey from Market Vendor to Property Magnate
Truong My Lan’s rise to power is a remarkable one. Born into modest beginnings, she started out as a market vendor in Ho Chi Minh City, selling cosmetics with her mother. Capitalizing on Vietnam's economic reforms in the 1980s, Lan grew her business empire, eventually expanding into the real estate sector. By the 1990s, she had established a vast portfolio of hotels, restaurants, and properties, becoming one of the country’s most influential business leaders. Lan’s success culminated in her becoming the chairwoman of Van Thinh Phat Group, a conglomerate that wielded substantial influence in Vietnam’s property market.
The Massive Fraud Scheme
However, Lan’s success took a dark turn in 2022, when she was arrested for orchestrating a fraudulent scheme that would go on to become the largest of its kind in history. Authorities discovered that Lan secretly controlled Saigon Commercial Bank (SCB), the fifth-largest bank in Vietnam. Between 2012 and 2022, Lan used shell companies and third parties to facilitate fake loan applications, siphoning off an estimated $12.5 billion.
The true scale of the fraud was staggering, with prosecutors estimating that the total damages could reach up to $27 billion, nearly 3% of Vietnam’s GDP in 2022. Thousands of ordinary citizens were affected, losing their life savings, which were tied up in the bank and Lan’s real estate ventures.
To cover up her actions, Lan and her co-conspirators allegedly bribed government officials, with a bribe of $5.2 million — the largest recorded bribe in the nation’s history.
The Trial and Conviction
In April 2024, after a lengthy investigation and trial involving 85 defendants, Truong My Lan was sentenced to death for embezzlement, bribery, and violations of banking regulations. The trial, one of the most complex in Vietnam’s history, required authorities to gather an immense amount of evidence — 105 boxes, weighing over six tonnes.
In addition to Lan, several family members and associates, including her husband, a Hong Kong businessman, and her niece, faced charges for their roles in the fraud. The trial also exposed deep connections between Lan, former bank executives, and corrupt government officials.
The Road to Avoiding Execution
Since her conviction, Lan has been working tirelessly to raise the $9 billion needed to reduce her sentence. She has been selling assets and seeking loans from friends and associates to raise the required amount. However, liquidating her vast holdings, which include luxury real estate and stakes in various business ventures, has proven to be difficult.
Lan’s defense team argues that her death sentence is hindering her ability to secure the best prices for her assets. They believe that if her sentence were reduced to life imprisonment, she would have a better chance of negotiating favorable deals.
A Dramatic and Unfolding Story
The case of Truong My Lan serves as a chilling reminder of the dangers of unchecked power and the devastating effects of corruption on a nation’s economy. While her fate remains uncertain, her story continues to make headlines, drawing global attention to the consequences of financial fraud on an international scale.
As Truong My Lan continues her battle to avoid execution, the Vietnamese government and the international community will closely monitor the developments in this high-stakes legal drama
Reference from:-https://www.ndtv.com/world-news/how-vietnamese-property-tycoon-truong-my-lan-masterminded-the-world-s-biggest-bank-fraud-7168565