In a significant legal ruling, a court in Vietnam sentenced Truong My Lan to death for embezzling an estimated $12 billion.
Starting as a humble cosmetics saleswoman, Lan became a leading figure in Vietnam’s real estate and banking sectors during market reforms initiated in the late 1980s.
Her rise culminated in acquiring control of the Commercial Bank of Saigon in 2012, formed from three nearly bankrupt banks.
Despite regulations limiting individual bank share ownership to 5%, Lan secretly controlled over 90% of the bank through proxies and shell companies.
This control enabled her to influence the bank’s lending decisions significantly, with her companies receiving 93% of all loans issued.
Lan was also implicated in extensive corruption, including a $5 million bribe to the chief inspector of Vietnam’s Central Bank.
From 2019 to her 2022 arrest, Lan directed the withdrawal of about $4 billion in cash from the bank, which was then transported to her residence.
The high-profile trial involved 2,700 witnesses, 10 prosecutors, and about 200 lawyers, with case materials filling 104 boxes weighing six tons.
The trial was part of Vietnam’s “Flaming Furnaces” anti-corruption campaign, aimed at making Vietnam a developed and innovative economy by 2045.
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This campaign has led to the imprisonment of hundreds of officials and the resignation of high-level figures including two presidents and deputy prime ministers.
Lan pleaded not guilty and expressed remorse, citing a lack of banking and legal knowledge. Her legal team intends to appeal the verdict.
The court also implicated other high-profile figures, resulting in prison sentences for Lan’s husband and niece.
The case has raised concerns about Vietnam’s investment climate, revealing deep-seated illegal activities within key economic sectors.