Vietnam’s Real Estate Tycoon Faces Death Sentence in Landmark Financial Fraud Case

Vietnam’s largest financial fraud case culminated in the sentencing of real estate tycoon Truong My Lan to death on Thursday. The 67-year-old chairwoman of Van Thinh Phat, a prominent real estate company, was convicted of orchestrating fraud amounting to $12.5 billion, nearly 3 percent of the country’s GDP in 2022. Lan’s niece, Truong Hue Van, Van Thinh Phat’s chief executive, received a 17-year prison sentence for her complicity.

Lan’s involvement in the 2011 merger of the troubled Saigon Joint Commercial Bank (SCB) with two other lenders, coordinated by Vietnam’s central bank, formed the crux of the accusations against her. Government documents allege Lan exploited SCB for personal gain, illicitly controlling it from 2012 to 2022. The scheme involved the use of numerous “ghost companies,” both domestic and international, to issue loans to herself and her associates, resulting in $27 billion in losses, according to state media outlet VN Express, as reported by Associated Press.

Moreover, Lan stands accused of bribing government officials, including a former central bank official who received a life sentence for accepting $5.2 million in bribes. While the death penalty is not uncommon in Vietnam, its application in financial crime cases, especially involving such a high-profile figure, is rare.

The severity of the sentence underscores Vietnam’s commitment to combating financial crimes and holding perpetrators accountable. Lan’s case serves as a stark reminder of the consequences of corruption and fraud in the country’s economic landscape.