HANOI, Vietnam (AP) — Vietnamese real estate tycoon Truong My Lan has been sentenced to life in prison for fraudulently obtaining property worth billions of dollars, in a case that highlights the government’s crackdown on corruption. Lan was previously convicted in April of a separate fraud amounting to $12.5 billion, for which she received a death sentence by lethal injection. The trials were split due to the numerous allegations against her, and Thursday’s verdict adds to her legal troubles as she awaits the appeal of her death sentence. Vietnam has issued over 2,000 death sentences in the past decade, primarily for crimes like murder and drug trafficking.
Lan, who is the chairwoman of property developer Van Thinh Phat, expressed remorse in her closing statement, acknowledging the impact her actions had on thousands of families. One victim, schoolteacher Nguyen Hieu, who invested $36,000 in illegal bonds issued by Lan’s company, believed the life sentence was fair and hoped for the death penalty to be commuted so that Lan could repay her victims. In addition to Lan, 33 co-defendants were found guilty of various charges, with sentences ranging from two to 23 years in prison. Lan’s husband, Chu Nap Kee, was sentenced to two years for money laundering.
Lan was accused of raising $1.2 billion from nearly 36,000 investors through illegal bond issuances and was found guilty of siphoning off $18 billion obtained through fraud. She was also charged with illegal money transfers totaling over $4.5 billion in and out of Vietnam between 2012 and 2022. It remains unclear whether Lan will appeal the verdict, and no date has been set for the appeal of her death penalty conviction. The Communist Party’s anti-corruption campaign has resulted in the removal of several high-ranking officials, including former President Vo Van Thuong. Since 2016, thousands of party officials have been disciplined for corruption.
The anti-corruption drive, initiated in 2013, intensified in 2018 with a focus on the private sector, leading to the arrest of several prominent business owners. Communist Party General Secretary Nguyen Phu Trong, who spearheaded the campaign, passed away earlier this year. In a separate case, business tycoon Trinh Van Quyet was convicted of defrauding stockholders of nearly $150 million and sentenced to 21 years in prison. Lan and her family founded Van Thinh Phat in 1992, establishing it as one of Vietnam’s wealthiest real estate companies with projects ranging from luxury residential buildings to hotels and shopping centers.
The scale of Lan’s fraudulent activities has raised concerns about the integrity of other banks and businesses in Vietnam, affecting the country’s economic outlook and causing unease among foreign investors. As Vietnam strives to position itself as an attractive destination for businesses seeking to diversify their supply chains, cases like Lan’s highlight the challenges posed by corruption within the financial industry. Despite the government’s efforts to combat corruption, the prosecution of high-profile individuals like Lan underscores the ongoing battle against financial misconduct in Vietnam.
