In a landmark trial, Vietnamese real estate billionaire Truong My Lan was sentenced to death for embezzling $12.5 billion from the Saigon Commercial Bank (SCB) and bribing central bankers and government officials. The verdict was announced on Thursday, with Lan receiving the harshest punishment in Vietnam’s history, while other defendants received sentences ranging from three years’ suspended imprisonment to life imprisonment.
The trial, which lasted five weeks, included 86 defendants, including former central bankers and SCB directors, accused of bribery, abuse of power, embezzlement, and violating the Banking Act. The former head of the State Bank of Vietnam’s inspection team, By Thi Nhan, was also among the accused, charged with accepting a bribe of $5.2 million.
Lan was ordered to pay back almost the entire amount he embezzled from SCB customers. The death sentence for embezzlement is a severe punishment that has sparked controversy in Vietnam. Lan’s spouse received a nine-year prison sentence after being found guilty of collusion in the fraudulent activities.
Following the arrests of Lan and other defendants in October 2022 as part of Vietnam’s anti-corruption program, public demonstrations took place in Hanoi and Ho Chi Minh City. Lan expressed desperation and suicidal thoughts during his trial, admitting that he regretted his involvement in the banking sector.
The trial involved 2,700 witnesses and involved ten prosecutors and approximately 200 lawyers. Victims included approximately 42,000 holders of SCB bonds who were unable to withdraw their money after Lan’s arrest. The trial highlighted the prevalence of financial fraud and the need for stricter regulations and enforcement in Vietnam.
In a correction on April 11th 2024 it was stated that Lan’s economic damage amounted to six percent of Vietnam’s GDP in 2023.
This case is considered one of the largest financial fraud trials in history.
