Real Estate Tycoon's Downfall: Vietnam's Largest Fraud Case Ends In A Death Sentence

A court has sentenced the chairwoman of Van Thinh Phat Holdings Group to death.

Vietnamese property tycoon Truong My Lan, center, at a court in Ho Chi Minh city on April 11, 2024. AFP/Getty Images

In a remarkable change of events, Truong My Lan, long regarded as an important person in Vietnam’s real estate market, suffered the ultimate punishment for her role in a massive $12 billion financial fraud scam.

After a trial in Ho Chi Minh City, the chairwoman of Van Thinh Phat Holdings Group has been sentenced to death by the court, marking a pivotal moment in the nation’s legal history.

Lan’s demise was caused by a series of heinous crimes, including embezzlement, bribery, and violations of banking laws, according to state media reports. The trial, which began on March 5, ended abruptly, emphasising the gravity of the charges brought against her.

The case occurred during a larger anti-corruption campaign launched by Vietnam’s ruling Communist Party, led by Nguyen Phu Trong. Known as the “blazing furnace,” the campaign attempted to rid systemic corruption, targeting both high-ranking officials and prominent corporate players. Despite these efforts, real outcomes remained elusive until Lan’s conviction.

The reach of Lan’s malfeasance resonated throughout Vietnam’s financial landscape, with the fraudulent actions centering on Saigon Joint Stock Commercial Bank (SCB). Lan, who wielded enormous power, allegedly funnelled over 304 trillion dong through a web of proxies, ultimately resulting into the bank’s bailout in October 2022.

The fallout from Lan’s conduct went far beyond the courtroom, shaking investor trust with the disclosure of such extensive deception. As a result, Vietnamese stocks suffered $40 billion loss, illustrating the impact of corporate misconduct on the national economy.

After the verdict was announced, Lan’s legal team remained silent, underlining the seriousness of the matter. Nonetheless, a family member disclosed intentions to challenge the court’s decision.