Truong My Lan, a prominent Vietnamese tycoon sentenced to death, now faces a fresh fraud trial. Discover more about the charges and ongoing legal battles.
State media reported that Truong My Lan, a prominent Vietnamese real estate mogul who had been given a death sentence this year for participating in the country’s most significant corruption scandal, has now stood trial on extra allegations of fraud.
On Thursday, Lan – who chairs the real estate firm Van Thinh Phat- made an appearance in court at Ho Chi Minh City. The trial spanning over a month accuses her of new charges including illegal money transfers across borders as well as fraudulently obtaining and laundering property.
Before the trial, the police issued a statement claiming that Lan had unlawfully raised 30 trillion dong ($1.2bn) from approximately 36,000 investors via the issuance of illegal bonds through four companies.
The charges against her include the allegation of having laundered 445 trillion dong ($18.1bn) and unlawfully transferring $4.5bn in and out of the country.
In April, the death penalty was given to a 67-year-old who was found guilty of masterminding Vietnam’s largest financial fraud case valued at $12.5 billion – nearly three percent of the country’s projected gross domestic product for 2022. Additionally, they were convicted of unlawful control over Saigon Commercial Bank (SCB), which enabled them to authorize loans leading up to massive losses amounting to $27 billion.
One of the most prominent cases in the country’s “Blazing Furnace” campaign against corruption, which has been ramped up since 2022 and resulted in several high-level arrests involving business leaders, government officials, as well as police and military personnel was her apprehension and subsequent sentencing.
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Early on Thursday, Lan and 33 individuals she was purportedly involved with were transported to court in a fleet of police vans. There were over twelve fraud victims anticipating the hearing outside, seeking entry.
The SCB fraud has been identified as victimizing approximately 36,000 people. This event caused shock in the communist nation and resulted in rare protests from those who suffered financial losses.
In 2022, Hoang Ngoc Diep invested her hard-earned money in an SCB bond. Sadly, she lost a total of 1.7 billion dong ($69,000), which was saved through much effort and determination.
After experiencing a mental breakdown and falling into depression, the 47-year-old shared with AFP news agency before her trial that she had come to terms with what happened. She revealed that her family relied on the interest earned to support both her mentally ill sister’s care and provide for their children’s education expenses.
The establishment of Van Thinh Phat company by Lan and her family in 1992 coincided with Vietnam’s shift to a market-oriented approach that welcomed foreign investors, replacing its previous state-run economy.
According to Tien Phong, a state media outlet, she began her career by assisting her Chinese entrepreneur mother in vending cosmetics at Ho Chi Minh City’s oldest market.
