Truong My Lan, a 68-year-old Vietnamese property mogul, has lost her appeal against a death sentence for orchestrating one of the largest banking frauds in history.
The former chairwoman of the Van Thinh Phat Group, a prominent real estate firm, was sentenced earlier this year after being found guilty of embezzling billions from the Saigon Commercial Bank (SCB), Vietnam’s fifth-largest lender. The fraud, spanning more than a decade, involved fraudulent loans and the misappropriation of funds through a complex network of shell companies. Authorities estimate the total amount stolen at $44 billion (£34.5 billion), with $27 billion misappropriated and $12 billion embezzled. The latter figure led to her death sentence for what is regarded as one of the country’s most severe white-collar crimes.
While Truong My Lan's appeal was rejected on December 3, 2024, there remains a slim chance for her to avoid execution. According to Vietnamese law, if she can repay 75% of the embezzled $12 billion, her sentence could be reduced to life imprisonment. This means that she needs to return $9 billion to have her sentence commuted.
Her lawyers have emphasized that she is actively working to gather the funds, but the process has proven difficult. The tycoon, once a market vendor who rose to prominence after economic reforms in 1986, holds a variety of assets including luxury real estate and stakes in various businesses. However, selling these assets has been a challenge. Many of the properties are located in Ho Chi Minh City and are not easily liquidated. Furthermore, authorities have frozen over a thousand of her assets, complicating efforts to raise the necessary funds.
Truong My Lan's rise from a market stall vendor to a real estate tycoon was a notable example of Vietnam's economic transformation. By the 1990s, she had acquired a vast portfolio of properties, including hotels and restaurants. However, her downfall came as part of the Communist Party's anti-corruption crackdown under Nguyen Phu Trong, which resulted in her conviction in April 2024.
Her sentencing was part of a broader scandal that saw 85 individuals convicted, including her husband and niece, who received prison terms ranging from three years to life.
Truong My Lan's defense team has argued that she should be given more time to sell her assets, as the current situation—under a death sentence—makes it harder for her to secure the best prices for her properties. Her lawyers claim that her holdings exceed the amount needed for compensation, but selling them requires time and effort. They urge the court to consider converting her sentence to life imprisonment to allow her to continue working toward repaying the stolen funds.
Despite her earlier defiance in court, Truong My Lan expressed deep remorse during the appeal hearings, acknowledging her role in the scandal and pledging to repay the stolen money. Her fate now hangs in the balance, with the court's decision marking a pivotal moment in Vietnam’s fight against high-level corruption.
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