A Vietnamese real estate mogul is sentenced to death for embezzling about 2 trillion yen, which is 3% of GDP
On April 11, 2024, the Ho Chi Minh City People's Court sentenced
Vietnamese property tycoon sentenced to death in $27bn fraud case | Vietnam | The Guardian
https://www.theguardian.com/world/2024/apr/11/vietnamese-property-tycoon-sentenced-to-death-in-27bn-case
Van Thinh Phat chairwoman Truong My Lan sentenced to death in $27B scam - VnExpress International
Vietnam Tycoon Lan Sentenced to Death Over $12 Billion Fraud - Bloomberg
https://www.bloomberg.com/news/articles/2024-04-11/vietnam-tycoon-lan-sentenced-to-death-in-12-billion-fraud-case
Van Thinh Phat, headquartered in Ho Chi Minh City, Vietnam, is a private investment group specializing in investments in real estate, hotels, sports, financial services and infrastructure, and was established by Mr. Lan in 1992. Mr. Lan served as Chairman of the board of directors when the company was first established in 1992 and subsequently became Chairman of Van Thinh Phat.
In 2012, Van Thinh Phat, under the supervision of Lan, acquired 91.5% of the shares of Saigon Commercial Bank (SCB), Vietnam's largest bank, through shell companies and other means.
Over the course of about 11 years from 2012 until his arrest in 2022, Lang is alleged to have illegally issued bonds worth tens of millions of dollars (billions of yen) and obtained $12.5 billion from SCB using 916 fake loan applications. According to foreign media VN Express, illegal loans to Lang accounted for 93% of the total loans issued by SCB. The prosecution also pointed out that the total damage caused by Lang amounts to $27 billion (about 4.13 trillion yen).
Lan and other SCB officials are also accused of paying $5.2 million in bribes to state officials to cover up the illegal fraud. 'The cash was stuffed into Styrofoam boxes,' said Do Thi Nhan, a former chief bank inspector for the State Bank of Vietnam.
After a lengthy investigation, Ran was arrested in October 2022. It was reported that upon his arrest, SCB depositors panicked, leading to a run on the bank.
Since 2021, Vietnam has been carrying out a national anti-corruption campaign called '
Lang, who was tried along with 85 other former central bankers, government officials, and former SCB executives, initially denied the charges. According to VN Express, documents related to the trial of Lang and others weighed about six tons, and authorities installed security cameras and fire prevention equipment to protect evidence from being concealed. In addition, more than 1,000 assets held by Lang were seized, and about 2,700 people, including 200 lawyers, were summoned to the trial.
In court, Lan testified that she 'entered the banking industry without sufficient experience and therefore lacked understanding of legal matters,' and that she 'considered suicide out of desperation,' and that she 'demanded leniency for her husband and niece, who are on trial as accomplices.'
After a five-week trial, the Ho Chi Minh City People's Court sentenced Lan to death for embezzlement, bribery and violating banking regulations. Lan is also required to pay $27 billion in damages. 'The defendant's actions have undermined the public's confidence in the Communist Party and the country's leadership,' the People's Court's presiding judge wrote in the ruling.
Dr Nguyen Khac Giang, visiting fellow at the ISEAS Yusof Ishak Institute , a Singapore-based think tank, said: 'This case is unprecedented and marks a milestone in Vietnam's crackdown on corruption. The case against Lan is the largest against a private company, involving the largest number of defendants, the largest amount of evidence and of course the most money.'
The death penalty in a corruption case is extremely rare, and Lan's family has indicated they intend to appeal the verdict.
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