The Vietnamese real estate tycoon Trung Mai Lan was sentenced to death today (Thursday) following her conviction in the largest financial fraud case in the country. Lan, the chairman of real estate company Van Thien, was found guilty of a fraud scheme worth 12.5 billion dollars, or about 3% of Vietnam’s GDP.
The court ordered Lan to pay $26.9 billion in compensation to SCB Bank for the losses she had caused by illegally controlling its shares and approving 2,500 loans that resulted in losses of 27 billion dollars. This is Lan’s first offense but the unusual punishment was justified due to the severity of the case and her involvement as head of a criminal organization, according to the verdict.
Lan’s niece, Trung Yu Van, CEO of Van Thien Real Estate Company, was also sentenced to 17 years in prison on charges of aiding and abetting a crime while former senior officials at SCB bank such as Du Ti Nan were given life imprisonment for accepting bribes worth over $5 million dollars.
Lan and her family founded Van Thien Phat Corporation in 1992 which later became one of Vietnam’s most prosperous real estate businesses with offices, hotels and shopping centers nationwide. The company played a significant role in shaping Vietnam’s economy during this period. Additionally, Lan was involved in merging SCB Bank with another major bank in Vietnam in 2011 which further strengthened her influence over financial institutions.
This case highlights the importance of accountability and transparency within the financial sector and serves as a reminder that corruption will not be tolerated regardless of how powerful individuals may be.
