A 68-year-old real estate tycoon named Truong My Lan was given the death penalty for masterminding the biggest bank scam in history in a startling case that has engulfed Vietnam and the international financial community. Thousands of regular people were impacted by her actions, which took place over a ten-year period and rocked Vietnam's financial system to its foundation.

Lan, who was born in Ho Chi Minh City into a Sino-Vietnamese household, started off selling cosmetics at the market with her mother. She steadily grew her business empire by taking advantage of Vietnam's economic reforms in 1986. She had accumulated a sizable hotel and restaurant portfolio by the 1990s. As chairwoman of Van Thinh Phat Group, her power in Vietnam's real estate sector grew unequaled.

The Fraud Unveiled

Lan's fraudulent practices came to light following her arrest in October 2022. Investigations found that she secretly controlled Saigon Commercial Bank (SCB), Vietnam's fifth-largest lender, using a network of shell businesses and intermediaries. She defrauded an estimated $12.5 billion by manipulating phony loan applications over ten years. The total damages, including ripple effects, were estimated at $27 billion (Rs 22,885.27 crores), or about 3% of Vietnam's GDP at the time.

The consequences of her plot were devastating. Thousands of investors lost their life investments, resulting in rare public protests in the communist country. Prosecutors revealed that Lan and her collaborators, including former bank executives and officials, paid bribes totaling $5.2 million, the highest recorded bribe in Vietnam's history.

A trial on an unprecedented scale

The trial of Lan and 85 other defendants, including her husband and niece, was one of Vietnam's largest legal cases. Authorities gathered more than six tonnes of evidence to support their case. The court sentenced Lan to death in April 2024 for theft, bribery, and violating banking laws. During her appeal, Lan expressed regret, saying, "I feel deeply ashamed to have caused such harm to the nation's resources." Despite her plea for compassion, the court upheld her death sentence, citing the unprecedented scope of her offenses.

Under Vietnamese law, Lan's sentence might be reduced to life imprisonment if she repays 75% of the embezzled monies, which totals $9 billion. However, selling her considerable assets, which include luxury real estate, venture capital interests, and stock, has been tough. Lan's attorneys contended that the death penalty hampered her capacity to negotiate fair terms for her properties.

"The total value of her assets exceeds the compensation required," her lawyer, Nguyen Huy Thiep, said. "However, selling these assets, particularly real estate, takes time and favorable conditions."

Race against time

Efforts to raise the necessary funds have included selling assets, seeking loans, and leveraging relationships. Despite these efforts, Lan remains in a dangerous race against the clock to achieve the deadline before her execution.
This case is part of Vietnam's larger anti-corruption drive, known as the "Blazing Furnace" campaign, which targets strong persons in industry and government. The incident illustrates banking system flaws and the catastrophic repercussions of uncontrolled malfeasance.

As Vietnam deals with the ramifications, Truong My Lan's case serves as a cautionary story about ambition, deception, and the deadly consequences of fraud.