Renowned Vietnamese businesswoman Truong My Lan received the death penalty for a $12.5 billion swindle.
In the largest-ever financial fraud case in Vietnam, real estate mogul Truong My Lan was sentenced to death on Thursday. The government accused a 67-year-old businesswoman of fraud in 2022. She allegedly defrauded the government of $12.5 billion. This amount equals almost 3 percent of the nation’s GDP. She holds the position of chair at Van Thinh Phat. Van Thinh Phat has developed luxurious residences, hotels, offices, and shopping centers. Truong Hue Van, the CEO of Van Thinh Phat, received a 17-year prison sentence. The court found her guilty of aiding her aunt, Lan, in the fraud. Reports suggest that Vietnam does use the death penalty. However, it rarely applies it in cases of financial crimes. It is even rarer for individuals with high profiles.
What is the charge against Truong My Lan?
Under a scheme overseen by Vietnam’s central bank, Lan participated in the 2011 merger of the financially troubled Saigon Joint Commercial Bank, or SCB, with two other lenders.
The federal filings claim that Lan illegally controlled the bank from 2012 until 2022 and utilized it for personal gain. The documents also claimed that she loaned money to herself and her accomplices through a number of “ghost companies” that operated both locally and abroad. The state media VN Express reported, and the Associated Press cited, that the loans resulted in losses of $27 billion.
Records indicate that Lan faced charges for bribing public officials. This includes a former central officer who was sentenced to life imprisonment. The officer accepted bribes amounting to $5.2 million.
The court sentenced her to death on the grounds that her activities “erode people’s trust in the leadership of the (Communist) party and state, as well as violate individuals’ property management rights,” according to the court’s statement.
Who is Truong My Lan?
In October 2022, Truong My Lan was arrested. Her arrest was part of a broader effort. This effort is Vietnam’s campaign against corruption. The campaign started in 2022. It has been ongoing and intensifying.
Lan was born in the year 1956. Her early years were spent assisting her mother. Her mother was a Chinese businesswoman. Together, they sold cosmetics. Their place of business was the oldest market in Ho Chi Minh City.
Lan and her family founded Van Thinh Phat in 1992. The company was started by them. Over the years, it expanded significantly. It became one of Vietnam’s richest real estate firms. Van Thinh Phat is now recognized as a major player in the industry.
She also wed Hong Kong investor Eric Chu Nap-kee in 1992, and the two of them have two daughters.
Currently, the company has connections with several notable properties in Ho Chi Minh City. These include the Windsor Plaza Hotel, known for its luxury. Also linked is the Capital Place office building, which stands tall at 37 stories. Another significant property is the Times Square Saigon, an impressive 39-story structure. The company also has an association with the Sherwood Residence hotel. This hotel is well-known and was where Lan resided prior to her arrest.
Explore more viral stories and trends at Viralsaala. Stay updated with the latest news and insights! Visit our website now.