Truong My Lan, the billionaire property developer at the center of Vietnam’s $27 billion fraud scandal, faces a death sentence unless she can repay $9 billion—leaving the nation grappling with financial shockwaves and rare public protests from thousands of victims
A Vietnamese court has upheld the death sentence for Truong My Lan, a prominent real estate tycoon, in a $27 billion fraud case. However, her life could be spared if she manages to return three-quarters of the embezzled funds—$9 billion.
Lan, 68, founder of Van Thinh Phat Group, was convicted earlier this year of siphoning billions from Saigon Commercial Bank (SCB), which prosecutors say she effectively controlled. Her month-long appeal failed, with the Ho Chi Minh City court declaring there was “no basis” to reduce her punishment.
Life Over Death: A Billion-Dollar Bargain
The court ruled that if Lan repays $9 billion, her sentence could be commuted to life imprisonment. Her lawyer, Nguyen Huy Thiep, confirmed that her assets—mostly real estate—exceed this amount but require significant time to liquidate.
Lan has already surrendered over 600 properties, but their value remains unclear. The tycoon and her defense team argue she has done enough to merit leniency, though the court disagreed.
Meanwhile, her husband, Hong Kong billionaire Eric Chu Nap Kee, saw his prison term reduced from nine years to seven.
A Nation Shocked by SCB Scandal
Lan’s fraudulent activities left tens of thousands of SCB investors in financial ruin, triggering rare public protests in the tightly controlled communist nation.
Prosecutors claim Lan’s scheme caused $27 billion in damages—approximately 6% of Vietnam’s 2023 GDP—making it one of the largest financial scandals in the country’s history.
Lan initially owned only 5% of SCB on paper but was found to control over 90% through associates. During her trial, she suggested liquidating SCB to repay her victims, saying,
“The quickest way to make amends is to sell our assets and repay the state and the people.”
Years Before Execution?
Vietnamese executions are carried out by lethal injection, but legal experts believe it could take years before Lan faces this fate. Her final hope lies in an appeal for amnesty to the president.
In April, a former State Bank of Vietnam inspector received life imprisonment for accepting a $5 million bribe to overlook SCB’s financial irregularities. This week, the court also upheld that sentence.
The “Burning Furnace” Corruption Crackdown
Lan’s case is part of Vietnam’s sweeping anti-corruption campaign, nicknamed the “burning furnace,” which has ensnared dozens of officials and business elites.
Despite her initial defiance, Lan appeared contrite during her appeal hearings, expressing regret and shame for draining national resources.
“I feel pained due to the waste of national resources and deeply embarrassed to face these charges,” she told the court.
Lan is also serving a life sentence in a separate money-laundering case, underscoring her fall from grace as one of Vietnam’s most influential business figures.
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