Vietnamese property tycoon Truong My Lan, 68, recently denied an appeal against her death sentence, is now challenging a life sentence in a separate case where she was convicted of large-scale money laundering, according to state media reports on Thursday (Dec 12). Lan is a prominent figure in Vietnam’s property sector and the former head of Saigon Commercial Bank (SCB), which prosecutors assert she covertly controlled.
In April, Truong My Lan was sentenced to death for orchestrating a US$27 billion fraud scheme that swindled tens of thousands of bank investors, triggering widespread public outrage and rare protests in the tightly controlled communist state. Her appeal against the death penalty was rejected last week, with the court maintaining the sentence but offering a potential reprieve—Lan could avoid execution by returning 75% of the stolen funds.
Meanwhile, Lan faces additional legal battles. In October, she was handed a life sentence in a second trial after being found guilty of three crimes:
- Money laundering involving US$17.7 billion.
- Illegal cross-border cash trafficking worth US$4.5 billion.
- Bond fraud totaling US$1.2 billion.
The court described Lan as the “mastermind” of these crimes, highlighting her use of sophisticated methods and the severe consequences her actions inflicted.
A Network of Guilt
The fallout extends far beyond Lan. Thirty-three co-defendants were sentenced to prison terms ranging from two to 23 years, with 28 of them filing appeals. A former chief inspector of the State Bank of Vietnam was also implicated, receiving a life sentence for accepting a US$5 million bribe to overlook SCB’s financial irregularities.
The SCB Connection
Although Lan officially owned just 5% of SCB shares, the court concluded she controlled over 90% through a network of family, friends, and staff, allowing her to orchestrate the fraud. Prosecutors argue that the total damages from her schemes amount to US$27 billion—equivalent to 6% of Vietnam’s GDP in 2023.
Implications of a Corruption Crackdown
Lan’s case is emblematic of Vietnam’s sweeping anti-corruption drive, which has ensnared numerous high-profile figures. The outcome of her appeals will likely test the nation’s commitment to combating financial crime at the highest levels while addressing the public’s demand for justice and accountability.
This case not only underscores the vulnerabilities in Vietnam’s financial and regulatory systems but also highlights the need for systemic reforms to prevent similar scandals.
