HCMC – Prosecutors have reaffirmed their death penalty recommendation for Truong My Lan, former chairwoman of Van Thinh Phat Holdings Group Corporation, accusing her of embezzling VND304 trillion.
During the appellate trial on November 25, the High People’s Procuracy in HCMC upheld its proposed charges against Lan and 47 others implicated in financial misconduct related to Saigon Joint Stock Commercial Bank (SCB), Van Thinh Phat, and related entities. Prosecutors argued that Lan’s actions resulted in “unprecedented” financial losses and severe social harm, with no foreseeable timeline for recovery.
The real estate magnate allegedly orchestrated fraudulent activities between 2012 and 2017, directing her subordinates to establish shell companies and falsify loan applications. Investigators uncovered 368 fraudulent loans, leaving SCB with outstanding debts of VND132 trillion as of 2022.
Prosecutors alleged that Lan exerted control over SCB’s operations and diverted loans for personal purposes. She is accused of inflating asset values and forging documents to secure funds, which were partially used to cover prior debts.
The prosecution stated that Lan’s actions caused direct losses of VND64.6 trillion after accounting for collateral assets. They further alleged that portions of the borrowed funds were transferred outside the bank’s control and used for non-business activities, including project acquisitions and personal liabilities.
Prosecutors noted that the court might consider leniency if Lan repays three-quarters of the embezzled amount, equivalent to VND280 trillion.
This case spans different iterations of Vietnam’s criminal laws, with earlier actions attributed to violations in lending regulations and later conduct classified as embezzlement.
In addition to seeking the death penalty for Lan, prosecutors have recommended sentences of 16-18 years for those found guilty of lending violations and 20 years for bribery-related offenses.
