In a shocking case that has gripped Vietnam and the global financial world, Truong My Lan, a 68-year-old property magnate, was sentenced to death for orchestrating the largest bank fraud in history. Her crimes, which spanned over a decade, left a devastating trail of economic damage, affecting thousands of ordinary citizens and shaking Vietnam’s financial system to its core.
Born into a Sino-Vietnamese family in Ho Chi Minh City, Lan began her journey as a market vendor selling cosmetics alongside her mother. She capitalized on Vietnam’s economic reforms in 1986, gradually expanding her business empire. By the 1990s, she had amassed a vast portfolio of hotels and restaurants. As the chairwoman of Van Thinh Phat Group, her influence in Vietnam’s real estate market became unrivaled.
The Fraud Unveiled
Lan’s fraudulent activities came to light after her arrest in October 2022. Investigations revealed that she secretly controlled Saigon Commercial Bank (SCB), Vietnam’s fifth-largest lender, through a web of shell companies and intermediaries. Over ten years, she manipulated fake loan applications to siphon off an estimated $12.5 billion. The total damages, including ripple effects, were estimated at a staggering $27 billion (Rs 22,885.27 crores), nearly 3% of Vietnam's GDP at the time.
The repercussions of her scheme were catastrophic. Thousands of investors lost their life savings, prompting rare public protests in the communist nation. Prosecutors exposed how Lan and her accomplices, including former bank executives and officials, paid bribes amounting to $5.2 million, marking the largest recorded bribe in Vietnam’s history.
A Trial of Unprecedented Scale
The trial of Lan and 85 co-defendants, including her husband and niece, was one of Vietnam’s largest legal proceedings. Authorities amassed over six tonnes of evidence to support their case. In April 2024, the court sentenced Lan to death for embezzlement, bribery, and violations of banking regulations.
During her appeal, Lan appeared contrite, stating, “I feel deeply ashamed to have caused such harm to the nation’s resources.” Despite her plea for leniency, the court upheld her death sentence, citing the unparalleled scale of her crimes.
Under Vietnamese law, Lan’s sentence could be reduced to life imprisonment if she repays 75% of the embezzled funds, amounting to $9 billion. However, liquidating her extensive assets, including luxury real estate, stakes in ventures, and shares, has proven challenging. Lan’s lawyers argued that the death sentence hindered her ability to negotiate fair prices for her holdings.
“The total value of her assets exceeds the compensation required,” her lawyer, Nguyen Huy Thiep, remarked. “However, selling these assets, particularly real estate, takes time and favorable conditions.”
Race Against Time
Efforts to raise the required amount have included selling properties, seeking loans, and leveraging connections. Despite these attempts, Lan remains in a perilous race against time to meet the deadline before her execution.
This case is part of Vietnam’s larger anti-corruption drive, dubbed the "Blazing Furnace" campaign, targeting powerful figures in business and government. The scandal highlights the vulnerabilities within financial systems and the dire consequences of unchecked corruption.
As Vietnam grapples with the fallout, Truong My Lan's case stands as a cautionary tale of ambition, deceit, and the devastating cost of fraud.
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