Vietnamese Tycoon Truong My Lan Loses Appeal Against Death Sentence for Bank Fraud

Vietnamese Tycoon Truong My Lan Loses Appeal Against Death Sentence for Bank Fraud

Truong My Lan, a 68-year-old Vietnamese property tycoon, has lost her appeal against the death sentence handed down earlier this year for orchestrating one of the largest bank frauds in history. The case, which has sent shockwaves through Vietnam, centers on her embezzlement of billions of dollars from the Saigon Commercial Bank (SCB), one of the country’s largest lenders.

The trial court in April found that Truong My Lan had secretly controlled SCB and exploited it over more than a decade. Prosecutors determined that $27 billion was misappropriated, and $12 billion embezzled—a crime so severe that it warranted the rare and shocking sentence of death for a white-collar crime. She is one of very few women in Vietnam to face capital punishment for financial misconduct.

Under Vietnamese law, Truong My Lan’s sentence could be commuted to life imprisonment if she repays 75% of the embezzled funds—approximately $9 billion. However, the appellate court upheld the initial verdict, citing the unprecedented scale of her crimes. The ruling leaves her with limited options, though she can still petition the president for amnesty.

Truong My Lan, born into a Sino-Vietnamese family in Ho Chi Minh City, began her career modestly as a market vendor selling cosmetics. She rose to prominence during Vietnam’s economic reforms in the 1980s, amassing a significant portfolio of hotels and restaurants. By the 1990s, she was a leading figure in real estate and later became chairwoman of the Van Thinh Phat Group, a prominent property firm.

Her conviction and sentencing are among the most dramatic outcomes of Vietnam’s anti-corruption campaign, “Blazing Furnaces,” spearheaded by former Communist Party Secretary-General Nguyen Phu Trong. The case also saw 85 other defendants convicted, with sentences ranging from three years suspended to life imprisonment. Among them were her husband and niece, who received nine- and 17-year prison terms, respectively.

Despite her conviction, Truong My Lan is scrambling to raise the $9 billion required to avoid execution. Her assets, which include luxury properties, shares, and stakes in various businesses, are valued at more than the compensation amount. However, liquidating them has proven difficult, with many assets frozen by the authorities. Additionally, her death sentence complicates negotiations for optimal sale prices.

Her legal team has argued for leniency, stating that commuting her sentence to life imprisonment would facilitate faster asset liquidation. “The total value of her holdings actually exceeds the required compensation amount,” said her lawyer, Nguyen Huy Thiep, adding that selling real estate and other investments requires significant time and effort.

Vietnam is known for its stringent stance on financial crimes, with the death penalty still in active use. Human rights groups estimate that over 1,000 individuals are currently on death row in Vietnam, making it one of the world’s top executioners. However, executions often face long delays, offering a glimmer of hope for individuals like Truong My Lan who are racing to meet legal conditions for clemency.

The case has not only tarnished Truong My Lan’s reputation but also shaken public trust in Vietnam’s financial sector. The State Bank of Vietnam has reportedly spent billions recapitalizing SCB to prevent a banking crisis.

As she navigates this precarious period, Truong My Lan’s fate hinges on her ability to recover the funds. Whether she can avoid execution by making amends remains to be seen, but her case underscores Vietnam’s uncompromising approach to corruption and financial misconduct.

The comments posted here are not from Cnews Live. Kindly refrain from using derogatory, personal, or obscene words in your comments.