Vietnamese property tycoon Truong My Lan has lost her appeal against her death sentence for masterminding what is regarded as the world’s largest bank fraud. The 68-year-old businesswoman is now in a precarious position, as Vietnamese law stipulates that if she can repay 75% of the total amount embezzled, her death sentence could be commuted to life imprisonment.
In April 2024, a trial court concluded that Truong My Lan had secretly controlled the Saigon Commercial Bank, Vietnam’s fifth-largest lender, orchestrating an elaborate scheme that allowed her to withdraw loans and cash over a span of more than a decade through a network of shell companies. Prosecutors estimated that her fraudulent activities amounted to an astounding total of $44 billion (£34.5 billion). Of this staggering sum, it is alleged that $27 billion was misappropriated and $12 billion was deemed to have been embezzled, marking this as one of the most egregious financial crimes in the nation’s history for which she was sentenced to death.
The court’s verdict was both rare and shocking, as Truong My Lan stands among the few women in Vietnam to receive a death sentence for a white-collar crime. This case has captured national and international attention, reflecting broader concerns about corruption and governance in the country. On Tuesday, the court upheld the death sentence, stating there was no basis for reducing the penalty. However, she still has the opportunity to avoid execution if she can return $9 billion, which constitutes three-quarters of the $12 billion she embezzled. It’s important to note that this is not her final appeal; she can also petition the President of Vietnam for amnesty.
During her trial, Truong My Lan displayed moments of defiance, asserting her innocence and the legitimacy of her business dealings. Yet, in the recent hearings for her appeal, she adopted a more contrite demeanor, expressing embarrassment for having caused such a drain on the state’s resources. She conveyed that her sole focus now is to pay back what she had taken, highlighting a shift in her approach to the grave situation she faces.
Born into a Sino-Vietnamese family in Ho Chi Minh City, Truong My Lan’s rise to prominence began as a market stall vendor, selling cosmetics alongside her mother. After the Communist Party implemented economic reforms in 1986, she seized the opportunity to expand her ventures, purchasing land and properties. By the 1990s, she had amassed a significant portfolio of hotels and restaurants, establishing herself as a formidable player in Vietnam’s burgeoning real estate market.
At the time of her conviction in April, Truong My Lan was serving as the chairwoman of the prominent real estate firm, Van Thinh Phat Group. Her case became a focal point in the “Blazing Furnaces” anti-corruption campaign spearheaded by then-Communist Party Secretary-General Nguyen Phu Trong. This campaign aimed to root out corruption at all levels of government, and Truong My Lan’s conviction served as a stark warning to others in the business community.
In the aftermath of the trial, all 85 co-defendants were convicted. Among them, four received life sentences, while others, including Truong My Lan’s husband and niece, were handed prison terms ranging from 20 years to three years suspended. The severity of the sentences underscores the Vietnamese government’s commitment to combating corruption, especially in the financial sector.
The State Bank of Vietnam reportedly spent billions of dollars recapitalizing Saigon Commercial Bank to avert a potential banking crisis, highlighting the significant implications of Truong My Lan’s actions on the national economy. Prosecutors argued that her crimes were unprecedented in scale and complexity, asserting that such a breach of trust warranted the harshest possible penalties without the possibility of leniency.
Truong My Lan’s legal team has asserted that she is working diligently to secure the necessary $9 billion for restitution. However, converting her assets into cash has proven to be a daunting challenge. Among her holdings are luxury properties in Ho Chi Minh City, which, while potentially lucrative, may not yield quick sales. Other assets include shares and stakes in various businesses and property projects, which complicate her efforts to raise the required funds swiftly.
In total, authorities have identified over a thousand different assets linked to the fraudulent activities, but these have been frozen pending the outcome of the legal proceedings. Reports indicate that Truong My Lan has also reached out to friends and associates to solicit loans to help meet her restitution goal.
Her legal representatives have argued for leniency based on financial grounds, emphasizing that her current death sentence hampers her ability to negotiate favorable prices for her assets. They contend that if she were to receive a life sentence instead, she could more effectively liquidate her holdings to fulfill her financial obligations.
“The total value of her holdings actually exceeds the required compensation amount,” lawyer Nguyen Huy Thiep noted before her appeal was dismissed. “However, these require time and effort to sell, as many of the assets are real estate and take time to liquidate. Truong My Lan hopes the court can create the most favorable conditions for her to continue making compensation.”
Despite these arguments, few observers expected the judges to be swayed by her team’s appeal. Truong My Lan now finds herself in a dire race against time and the potential for execution, desperately trying to amass the funds needed to avoid the ultimate penalty.
In Vietnam, the death penalty is treated as a closely guarded state secret. The government does not disclose the exact number of individuals on death row, but human rights organizations estimate that there are over 1,000 inmates facing execution. Vietnam ranks among the world’s leading executors, often implementing death sentences without extensive delays, although prisoners typically receive very little advance notice before their executions are carried out.
If Truong My Lan can successfully recover the $9 billion before her sentence is enacted, it is likely that her life will be spared, allowing her to continue navigating the complex landscape of Vietnamese business and law.
