Fraudulent Empire: The Downfall of Truong My Lan

Truong My Lan's death sentence was upheld in Vietnam's largest fraud case involving embezzlement and bribery amounting to USD 12.5 billion. As head of Van Thinh Phat, Lan illegally controlled SCB, causing USD 27 billion in losses. Her arrest marked a pivotal moment in Vietnam's anti-corruption drive.

The death sentence for Vietnamese real estate mogul Truong My Lan was upheld on Tuesday, marking a significant moment in the country's most extensive fraud case. Lan was convicted of embezzlement and bribery, valued at USD 12.5 billion, severely impacting Vietnam's economy as it represented nearly 3 percent of the nation's 2022 GDP.

As chair of the Van Thinh Phat real estate firm, she illegally controlled Saigon Joint Stock Commercial Bank, leading to 2,500 loans and USD 27 billion in losses from 2012 to 2022. Although she appealed, arguing she had repaid the funds, the court found legal issues with her assets and dismissed the appeal. Her death sentence might be commuted to life if she reimburses three-fourths of the losses, roughly USD 11 billion.

Lan's arrest is among the highest-profile cases in Vietnam's intensified anti-corruption sweep post-2022. The scale of her fraud has raised concerns about the country's banking sector and future economic stability, shaking investor confidence at a crucial time for Vietnam's growth. The case highlights the deeper systemic issues within Vietnam's financial institutions and governance.

(With inputs from agencies.)