Vietnamese Tycoon Truong My Lan’s Death Sentence Upheld in Fraud Scandal
A court in Ho Chi Minh City has upheld the death penalty for Truong My Lan, a prominent property tycoon, convicted in a multi-billion-dollar fraud case. The 68-year-old was found guilty of embezzling funds from Saigon Commercial Bank (SCB), a financial institution she was deemed to control, resulting in losses estimated at $27 billion.
Lan’s appeal, a handwritten document over five pages, pleaded for leniency, describing the sentence as overly harsh. Despite her appeal, the court ruled there was “no basis” for reducing her punishment, citing the unprecedented scale and severe consequences of her actions.
The month-long appeal saw over 100 lawyers in attendance and drew significant public attention. Lan, seated alongside her husband—who is serving a nine-year sentence for separate banking violations—listened as the verdict was delivered.
This case has sent shockwaves across Vietnam, with tens of thousands of SCB investors losing their life savings. Rare protests erupted, calling for justice and highlighting the widespread impact of the financial scandal.
Vietnamese law provides a possible reprieve from the death penalty for those who return a substantial portion of embezzled funds and cooperate fully with authorities. However, prosecutors argued that Lan failed to meet these conditions.
Lan, who founded Van Thinh Phat, a prominent real estate development group, proposed liquidating SCB and selling assets to repay debts, including those owed to the State Bank of Vietnam and affected individuals. Among her assets are luxury housing complexes, a shopping mall, and a harbor in Ho Chi Minh City.
Initially convicted of embezzling $12.5 billion, Lan’s actions were later determined to have caused total damages of $27 billion—equivalent to approximately six percent of Vietnam’s GDP in 2023.
The case is part of a broader anti-corruption drive, known as the “burning furnace,” targeting high-profile figures in Vietnam’s business and political circles. Lan and dozens of co-defendants, including senior banking officials, face various charges, with many seeking reduced sentences during the appeal process.
In a separate case last month, Lan was convicted of money laundering and sentenced to life imprisonment, further cementing her fall from grace.
