Vietnamese real estate tycoon Truong My Lan (center) looks on outside a court in Ho Chi Minh City on April 11, 2024.
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Vietnamese real estate tycoon Truong My Lan was sentenced to death on Thursday for her role in the country's biggest financial fraud case, state media outlet Thanh Nien reported.
Lan was found guilty of embezzlement, bribery and violating bank rules related to lending. According to state media, she was sentenced to death on the embezzlement charges and 20 years in prison on the other two charges.
Lan, the chairwoman of real estate development company Van Thinh Phat Holdings Group, was accused of appropriating assets of the Saigon Joint Stock Commercial Bank by making unlawful loans to Van Thinh Phat and shell companies.
Much of Lan's defense relied on her lawyers' argument that she only controls about 15% of the bank and holds no official position in the bank, suggesting that the embezzlement charge was not appropriate, local media reported.
However, witnesses who held large shares themselves told the court that they had been instructed to act on Lan's behalf. The judges therefore found that Lan held a majority stake of more than 90% in SCB through proxies and was the de facto owner of the bank, local media reported.
The loans reportedly had a total value of $44 billion and accounted for more than 90% of SCB's loans between 2012 and 2022. An estimated $12.3 billion was allegedly funneled to Van Thinh Phat, while other funds were used privately. Some of the more than 1,000 loans had been paid off by Lan, the judges noted, but the court said she must fully compensate the bank.
Lan was first arrested in 2022, with allegations dating back about ten years. In addition to Lan, more than 80 other people, including central bank officials, were charged in the case with damaging the SCB, state media reported.
Reuters reported on Thursday that a family member confirmed that Lan would appeal the verdict.
CNBC could not independently verify the report.
The case against Lan is part of a broader anti-corruption crackdown led by Vietnam's ruling Communist Party that has been dubbed a “blazing furnace.” Senior politicians, including former Vietnamese presidents, have been forced to resign in connection with the campaign and hundreds of officials and businessmen have been convicted.