'Embezzlement of 3% of National GDP'... Death Penalty Sought for Vietnamese Financial Fraud Tycoon

Prosecutors: "The Crime's Consequences Are Very Serious... Strict Punishment Is Necessary"
Life Sentences Requested for Some Co-Conspirators

A local real estate tycoon involved in the largest embezzlement case in Vietnam's history has been sentenced to death. The embezzled amount is approximately 16.4 trillion KRW, exceeding 3% of Vietnam's GDP (Gross Domestic Product).

Chairwoman Truong My Lan attending the trial
[Photo by Yonhap News]

On the 20th, local media VN Express and foreign news agencies reported that the Vietnamese prosecution requested the death penalty for Truong My Lan (68), chairman of real estate developer Bantinpat Holdings, who is known as the mastermind behind the case. The prosecution stated, "The defendant has neither admitted guilt nor shown remorse," and added, "The consequences of the crime are very serious and irreversible, so he must be strictly punished and removed from society."

Lan was indicted last December on charges of embezzling 304 trillion VND (approximately 16.4 trillion KRW) from Saigon Commercial Bank (SCB) in collusion with associates. The amount he is accused of embezzling exceeds 3% of Vietnam's GDP, making it one of the largest fraud cases not only in Vietnam but also in Southeast Asia.

Investigators found that Lan, who effectively owns 91.5% of SCB's shares as the largest shareholder, used 1,000 paper companies between 2012 and 2022 to apply for false loans 2,500 times, then withdrew the money for personal use. The prosecution pointed out that considering the loan interest on the embezzled amount, SCB's financial loss from this case amounts to 498 trillion VND (26.9 trillion KRW).

On the same day, some former SCB executives who assisted Lan's embezzlement and government auditors who accepted bribes and overlooked the crimes were sentenced to life imprisonment. A total of 86 people, including SCB senior officials and government employees, were brought to trial in connection with this case, and the bribes received by the officials alone amounted to 5.2 million USD (7 billion KRW). As a result, not only the embezzlement but also the bribery is said to be the largest in Vietnam's history.

The final verdict for this trial, which began on the 5th, is scheduled to be delivered at the end of next month. Previously, on November 18 last year, the Vietnamese authorities expressed a strong determination to eradicate corruption crimes at the Central Anti-Corruption Steering Committee meeting, with Secretary General Trong leading the 'war against corruption,' raising expectations that a severe punishment will be handed down as an example.

This content was produced with the assistance of AI translation services.