Vietnamese Tycoon’s Death Row Appeal Rejected in World’s Largest Bank Fraud Case

The death row appeal of a Vietnamese tycoon is denied after his involvement in the world’s largest bank fraud, marking a significant development in the nation’s financial crime history.

Vietnamese property magnate Truong My Lan has faced a setback in her appeal against the death sentence imposed for orchestrating the largest bank fraud in history.

At 68 years of age, she is now in a critical situation, as Vietnamese law stipulates that if she can reimburse 75% of the funds she misappropriated, her death sentence may be converted to life imprisonment.

In April, the trial court determined that Truong My Lan had covertly controlled Saigon Commercial Bank, the fifth largest bank in Vietnam, and had engaged in fraudulent activities involving loans and cash over a span of more than a decade through a network of shell companies, totaling $44 billion (£34.5 billion).

Prosecutors assert that $27 billion was unlawfully taken, while $12 billion was classified as embezzlement, the gravest financial offense for which she received the death penalty.

This verdict was both rare and shocking, as she is among the very few women in Vietnam to receive a death sentence for a white-collar crime.

On Tuesday, the court ruled that there were no grounds to lessen Truong My Lan’s death sentence. Nevertheless, she may still evade execution if she repays $9 billion, which constitutes three-quarters of the $12 billion she embezzled. This is not her final opportunity for appeal, as she retains the option to seek clemency from the president.

During her trial, Truong My Lan exhibited moments of defiance; however, in the recent appeal hearings, she displayed a more remorseful demeanor.

She expressed her embarrassment for being a burden on the state and emphasized her sole intention to repay the amount she had taken.

Truong My Lan, born into a Sino-Vietnamese family in Ho Chi Minh City, began her career as a market vendor selling cosmetics alongside her mother. Following the economic reforms introduced by the Communist Party in 1986, she ventured into real estate, and by the 1990s, she had amassed a significant portfolio of hotels and restaurants.

In April, following her conviction and sentencing, she held the position of chairwoman at the esteemed real estate company, Van Thinh Phat Group. This event marked a significant moment in the “Blazing Furnaces” anti-corruption initiative spearheaded by Nguyen Phu Trong, who was then the Secretary-General of the Communist Party.

All 85 other defendants faced conviction as well. Four received life sentences, while the remaining individuals, including Truong My Lan’s husband and niece, were handed prison terms that varied from 20 years to three years suspended.

It is reported that the State Bank of Vietnam has invested billions of dollars in recapitalizing Saigon Commercial Bank to avert a broader banking crisis. Prosecutors contended that her offenses were “massive and unprecedented,” warranting no leniency.

Truong My Lan’s legal representatives indicated that she was making every effort to secure the $9 billion required. However, liquidating her assets has proven to be a challenge.

Some of her assets consist of luxury properties in Ho Chi Minh City, which could theoretically be sold relatively quickly. Others are tied up in shares or stakes in various businesses and property ventures.

Overall, authorities have identified over a thousand distinct assets associated with the fraud, all of which have been frozen for the time being. Reports suggest that the businesswoman has also sought assistance from acquaintances to obtain loans to meet her financial obligations.

Her attorneys have requested leniency from the judges based on financial considerations. They argued that while she faces a death sentence, negotiating optimal prices for her assets and investments becomes increasingly difficult, complicating her ability to raise the necessary $9 billion.

They assert that her situation would improve significantly if she were instead sentenced to life imprisonment.

“The total value of her holdings actually exceeds the required compensation amount,” stated lawyer Nguyen Huy Thiep to the BBC prior to the rejection of her appeal.

“However, these assets require time and effort to sell, as many are real estate properties that take time to liquidate. Truong My Lan hopes the court can facilitate the most favorable conditions for her to continue making compensation.”