Vietnam's real estate tycoon Truong My Lan sentenced to death in fraud case. Who is she, the case - All you need to know

Truong My Lan, a prominent Vietnamese businesswoman, was given a death sentence for a $12.5 billion fraud.Read about the unprecedented case of Truong My Lan, a prominent figure in Vietnam’s real estate industry, sentenced to death for a $12.5 billion fraud, constituting 3% of the country’s GDP in 2022. Learn about the involvement of her niece and the rarity of such severe penalties in financial crime

What is Truong My Lan accused of?

Lan played a pivotal role in the 2011 merger involving the distressed Saigon Joint Commercial Bank (SCB), orchestrated by Vietnam’s central bank, alongside two other financial institutions.

As per official government records, Lan stands accused of exploiting the bank for personal gains, unlawfully exerting control over it from 2012 to 2022. Allegations suggest she leveraged a network of “ghost companies,” both domestic and international, to extend loans to herself and her cohorts, resulting in staggering losses amounting to $27 billion, as reported by state media outlet VN Express via Associated Press.

Moreover, Lan faces accusations of bribery directed towards government officials, including a former central authority sentenced to life imprisonment for accepting $5.2 million in bribes. The court, in its verdict of death penalty, highlighted that her actions not only infringed upon individuals’ property management rights but also pushed SCB into a state of special control, undermining public trust in the leadership of the Communist party and the state.

Who is Truong My Lan?

Truong My Lan, a prominent figure in Vietnam’s business landscape, was apprehended in October 2022 amid a nationwide crackdown on corruption. Born in 1956, her journey began humbly, assisting her mother’s cosmetics business at Ho Chi Minh City’s renowned marketplace.

In 1992, Lan and her family established Van Thinh Phat, which burgeoned into one of Vietnam’s most affluent real estate enterprises. Notably, she wedded Hong Kong investor Eric Chu Nap-kee the same year, with whom she shares two daughters.

Van Thinh Phat’s portfolio boasts iconic properties, including the towering Times Square Saigon, the opulent Windsor Plaza Hotel, the prestigious Capital Place office tower, and the esteemed Sherwood Residence hotel, where Lan resided before her arrest, according to AP reports.

The saga of Truong My Lan underscores the evolving landscape of Vietnam’s economic and legal spheres, marking a pivotal moment in the nation’s anti-corruption efforts.