Real Estate Mogul’s Death Sentence Upheld In Vietnam’s Largest Financial Scandal

A Vietnamese court on Tuesday upheld the death sentence for real estate tycoon Truong My Lan, rejecting her appeal in a high-profile $12 billion fraud case, according to state media.

Lan, the chairwoman of Van Thinh Phat Holdings Group, was convicted in April of embezzlement and bribery, marking Vietnam’s largest financial fraud on record. The High People’s Court in Ho Chi Minh City ruled there was insufficient grounds to reduce her sentence, as reported by VnExpress.

However, the sentence could be commuted to life imprisonment if Lan repays three-quarters of the embezzled funds while on death row, the report added.

Lan is one of the most prominent figures caught in Vietnam’s anti-corruption drive, dubbed the “Blazing Furnace” campaign. Prosecutors argued her actions caused “unprecedented” harm to society, the financial market, and the economy.

Despite her defense citing mitigating factors, such as partial repayment and remorse, prosecutors deemed them insufficient. Lan retains the right to seek a review under cassation or retrial procedures.

Her arrest in 2022 triggered a run on the Saigon Joint Stock Commercial Bank (SCB), largely owned by her proxies. Vietnam’s central bank reportedly injected $24 billion in emergency funds to stabilize SCB.

In addition to her death sentence, Lan received a life sentence in October for fraud, money laundering, and illegal money transfers.