HCMC – The HCMC People’s Court today, October 17, handed a life sentence to Truong My Lan, former chairwoman of Van Thinh Phat (VTP) Holdings Group Corporation, in the second phase of a case related to massive fraud and money laundering.
Thirty-three other defendants were found guilty of fraud, money laundering, and illegal cross-border currency transfers at VTP, Saigon Commercial Bank (SCB), and related entities.
Real estate tycoon Lan was sentenced to life imprisonment on all the three counts. The court found that she defrauded over 35,000 victims of more than VND30,000 billion through fraudulent bond issues.
A previous separate trial in the first phase of the case, Lan got a death sentence for embezzlement, local media reported.
As VTP Group faced difficulties in obtaining loans to settle debt, Lan devised a scheme involving key personnel from VTP, SCB, and Tan Viet Securities Joint Stock Company (TVSI) to issue and sell corporate bonds via private placement.
VTP used four of its subsidiaries—An Dong, Sunny World, Quang Thuan, and Setra—to issue 25 lots of unsecured bonds. The goal was to raise capital, expand operations, and restructure existing debt.
TVSI, representing the issuing entity, approved the bond packages from An Dong, Quang Thuan, and Setra. These companies then directly signed bond sale contracts.
According to the court, leaders of SCB and TVSI partnered to create a sales program for the bonds. SCB then trained its employees to market these bonds to the public, encouraging them to invest through TVSI.
VTP was found to have misappropriated funds from bond investors. These funds were used to cover bank loans, bond payments, project expenses, international transfers, and personal expenses for Lan.
The verdict stated Lan orchestrated a scheme to launder VND445,748 billion from January 1, 2018, to October 7, 2022. She instructed SCB and VTP affiliates to transfer funds out of the bank or withdraw cash to obscure its illicit origins.
These funds were used for various purposes, including paying debt, funding investment projects, rewarding individuals involved in the scheme, and transferring money abroad.
Between 2012 and 2022, Lan directed Trinh Quang Cong and other defendants to create false agreements for the purchase and sale of shares, capital contributions, and consulting services between Vietnamese and foreign entities.
The court said the defendants, while not physically transport currency, had employed a novel and intricate method of money laundering.
By manipulating the international payment and foreign exchange systems of SCB, Lan and her accomplices illegally moved a total of US$4.5 billion across borders. Of this amount, US$1.5 billion was taken out of the country, while US$3 billion was brought back into Vietnam.
