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## Real Estate Tycoon Sentenced to Death in Vietnam’s Largest Financial Fraud Case

HANOI, Vietnam (AP) — Real estate tycoon Truong My Lan was sentenced to death by a court in Ho Chi Minh City in southern Vietnam on Thursday, in what is being called the country’s largest financial fraud case ever, state media Vietnam Net reported.

The 67-year-old chair of the real estate company Van Thinh Phat was found guilty of fraud amounting to $12.5 billion — nearly 3% of the country’s 2022 GDP.

Lan illegally controlled Saigon Joint Stock Commercial Bank between 2012 and 2022, allowing 2,500 loans that resulted in losses of $27 billion to the bank, as reported by state media VnExpress. The court ordered her to compensate the bank $26.9 million.

Despite some mitigating circumstances — including that this was her first offense and her involvement in charity activities — the court found the severity of the case led to the harsh sentence. Lan was described as at the center of an orchestrated and sophisticated criminal enterprise with grave consequences and slim chances of the money being recovered, according to VnExpress.

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Her niece, Truong Hue Van, who is the chief executive of Van Thinh Phat, was also sentenced to 17 years in prison for aiding her aunt. Lan’s husband, Eric Chu Nap-kee, from Hong Kong, received a nine-year prison term.

Lan and her family founded the Van Thinh Phat company in 1992, following Vietnam’s shift from a state-run to a market-oriented economy that welcomed foreign investors. Starting with helping her mother sell cosmetics, Lan transformed Van Thinh Phat into one of Vietnam’s wealthiest real estate firms, handling luxury residential buildings, offices, hotels, and shopping centers. This established her as a key figure in the country’s financial industry.

The court revealed that Lan exploited her influence over SCB to secure funds, indirectly owning a significant portion of the bank and approving loans to shell companies. She allegedly funneled these loans back to herself through various means, and then used bribes to cover her tracks.

Former central bank official Do Thi Nhan was also convicted of accepting bribes and sentenced to life in prison alongside Lan.

Lan’s arrest in October 2022 was a major event in Vietnam’s ongoing anti-corruption campaign, known as the Blazing Furnace initiative. This crackdown has reached high levels of Vietnamese politics, leading to the resignation of former President Vo Van Thuong. The trial of Lan, however, shocked the nation and raised concerns about the integrity of other financial institutions in the country.

The impact of Lan’s crimes reverberated across Vietnam’s real estate sector, causing a significant downturn. With numerous property firms exiting the market, developers resorting to discounts and gifts to attract buyers, and rental prices plummeting in key areas, the sector is facing a challenging period.

The Communist Party General Secretary Nguyen Phu Trong has vowed to continue the fight against corruption in Vietnam in the long term, aiming to restore trust and stability in the country’s financial landscape.

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