In a significant ruling on 3 December 2024, the High People’s Court in Ho Chi Minh City upheld the death sentence for Truong My Lan, a 68-year-old property tycoon, solidifying her conviction related to a staggering US$12 billion fraud case that has rattled Vietnam.
Major Fallout from the Fraud
Lan, the chairwoman of Van Thinh Phat Holdings Group, was found guilty earlier in 2024 for embezzling from the Saigon Commercial Bank (SCB). This case, described as one of the biggest corruption scandals in the country’s history, has led to unprecedented consequences, affecting many individuals and the very structure of the financial market.
Background and Judicial Outcomes
- Initially sentenced to death in April 2024.
- Convicted of embezzling US$12.5 billion; however, total damages are reported at US$27 billion, around 6% of Vietnam’s GDP.
- Prosecutors emphasised the severe impact of her actions, calling them “unprecedented”.
During her appeal, Lan claimed that the death sentence was “too severe” and requested a more lenient approach. Despite her pleas, the court deemed that she has not sufficiently cooperated with authorities or returned a significant portion of the embezzled funds, which situation affects her potential for a reduced sentence.
Conditions for a Reduced Sentence
According to Vietnamese law, Lan could have her death penalty commuted to life imprisonment if she manages to repay three-quarters of the stolen assets. Currently, she suggests liquidating SCB to return funds, commenting on her embarrassment with the entire ordeal: “I feel pained due to the waste of national resources.”
Widespread Implications
The fallout from this case has been extensive, with public protests erupting as tens of thousands who had invested their savings in SCB lost everything. Lan, who was found to control over 90% of SCB’s decisions through personal connections despite holding only 5% of the shares, now finds herself at the centre of Vietnam’s ongoing crackdown on corruption—a campaign known as the “burning furnace”.
Currently, Lan faces additional legal troubles, having recently been convicted of money laundering and sentenced to life imprisonment in a separate case. The court’s decision on her appeal signifies a pivotal moment in Vietnam’s fight against corruption and the devastating impacts of financial fraud.