Vietnam Property Tycoon On Trial In Ksh.1.79 Trillion Fraud Case
On Tuesday, a prominent Vietnamese real estate mogul, along with numerous others, faced trial for allegedly embezzling $12.5 billion in what is being termed the largest fraud case in the country’s history.
Truong My Lan, who chairs the prominent developer Van Thinh Phat, allegedly deceived Saigon Commercial Bank (SCB) over a period of ten years, resulting in unsuspecting investors losing money.
Eighty-five additional individuals are undergoing trial in Ho Chi Minh City, a major business center in the south. This group comprises former central bankers, former government officials, and former executives of SCB. Notably, two Chinese nationals, who remain fugitives, are also implicated in the case, as reported by state media.
They are accused of offenses such as bribery, misuse of authority, embezzlement, and breaches of banking regulations.
On Tuesday, images from state media depicted numerous vans transporting the accused individuals to the courthouse, which was heavily guarded both inside and outside.
State media reported that there were 78 defendants present in court, while eight remained at large. International arrest warrants have been issued by the police for the fugitives.
Rare protests
Law enforcement has recognized approximately 42,000 individuals affected by the controversy, causing widespread astonishment across the nation and prompting hundreds to organize demonstrations in both Hanoi and Ho Chi Minh City—an unusual occurrence in the single-party communist system.
Lan, who is wedded to a prosperous Hong Kong entrepreneur, faces allegations of orchestrating fraudulent loan applications to access funds from SCB, a bank in which she held a 90 percent ownership stake.
Authorities report that individuals affected by the scheme are exclusively SCB bondholders who are unable to access their funds and have not received any interest or principal payments since Lan’s arrest in October 2022.
Lan’s suspected misappropriation of assets, spanning from 2012 to 2022, amounted to approximately three percent of Vietnam’s GDP in 2022.
Officials have stated that the purported $5.2 million provided by Lan and certain SCB bankers to government officials to mask SCB’s infractions and financial troubles represents the largest bribery amount ever documented in Vietnam.
As per the Law newspaper of Ho Chi Minh City, 10 prosecutors and around 200 lawyers are scheduled to participate in the trial. Meanwhile, reports from other state media outlets indicate that the court has been arranged to accommodate nearly 3,000 individuals interested in the case.
During the trial period lasting almost two months, documents as heavy as six tonnes will be managed, marking the lengthiest trial ever conducted in Vietnam.
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The apprehensions occurred in the context of a nationwide effort to combat corruption, which has ensnared numerous government officials and prominent figures in the business community over the past few years.
Since 2021, over 4,400 individuals have faced charges in over 1,700 corruption-related cases.
Other prominent executives implicated in the crackdown against corruption, with allegations of substantial fraudulent activities, encompass Truong Quy Thanh, who serves as the leader of the renowned soft drink company Tan Hiep Phat Group.
He and his two daughters are facing prosecution on suspicion of embezzling $31.5 million.
An impending trial awaits Do Anh Dung, the chairman of Tan Hoang Minh Group, over allegations of unlawfully obtaining $355 million through a bond sale involving over 6,500 investors.
Vietnam Property Tycoon On Trial In Ksh.1.79 Trillion Fraud Case
