Vietnamese real estate tycoon Truong My Lan, center, watches a court in Ho Chi Minh City on April 11, 2024.
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Vietnamese real estate tycoon Truong My Lan was sentenced to death on Thursday for his role in the country's largest financial fraud case, state media Thanh Nien reported. reported.
Lan was found guilty of embezzlement, bribery and violating banking rules regarding lending. She was sentenced to death on the embezzlement charges and 20 years in prison on each of the other two charges, according to state media.
Lan, chairwoman of real estate development company Van Thinh Phat Holdings Group, was accused of appropriating assets from Saigon Joint Stock Commercial Bank by obtaining illegal loans to Van Thinh Phat and shell companies.
Much of Lan's defense rested on her lawyers arguing that she only controlled about 15% of the bank and had no official position at the bank, suggesting that embezzlement charges were inappropriate, reports said. local media.
However, witnesses who had strong interests told the court that they had been ordered to act on Lan's behalf. The judges therefore determined that Lan owns a majority stake of more than 90% in SCB through powers and was the de facto owner of the bank, local media reported.
The loans were reportedly worth a total of $44 billion and accounted for more than 90% of SCB's loans between 2012 and 2022. An estimated $12.3 billion was allegedly channeled to Van Thinh Phat, while other funds were used privately. Judges found that Lan had settled some of the more than 1,000 loans, but the court said he would have to compensate the bank in full.
Lan was first arrested in 2022, with allegations dating back about 10 years. In addition to Lan, more than 80 people, including central bank officials, have been charged in the case of damaging the SCB, state media reported.
Reuters reported on Thursday that a family member confirmed that Lan would appeal the sentence.
CNBC could not independently verify the report.
The case against Lan is part of a broader crackdown on corruption led by Vietnam's ruling Communist Party that has been dubbed a “burning furnace.” Senior politicians, including former Vietnamese presidents, have been forced to resign in connection with the campaign and hundreds of officials and businessmen have been convicted.
