HCM City Court Begins Appeals Trial For Real Estate Tycoon Major Fraud Case

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The HCM City High People’s Court has commenced the appeals trial for Trương Mỹ Lan, the former chairwoman of Vạn Thịnh Phát Group, in one of Vietnam's largest financial fraud cases. This high-profile trial involves Lan and 27 accomplices who have been implicated in massive embezzlement and fraud schemes.

 

Lan, now 69, originally received a life sentence for defrauding bondholders of over VNĐ30 trillion (US$1.18 billion), in addition to 12 years for money laundering and eight years for illegally transporting $4.5 billion across borders. Her case is widely noted for affecting 42,000 victims and inciting significant public unrest nationwide.

 

To date, authorities have committed to recovering and returning fraudulent funds to the affected bondholders, having seized millions in assets associated with Lan, including real estate, shares, vehicles, and bank accounts. A compensation plan is in place, and the Department of Civil Judgment Enforcement has earmarked over VNĐ8 trillion ($315 million) for this purpose. They have also established a hotline and are coordinating with Tân Việt Securities Company to guide victims in documenting claims for compensation.

 

Previously, Lan faced a separate trial where she was sentenced to death for embezzling $27 billion from Saigon Commercial Bank (SCB), an amount equating to 6% of Vietnam’s GDP in 2023. Although she appealed this sentence, the appeal was denied due to the substantial impacts of her actions. Under Vietnamese law, Lan could avoid execution by returning 75% of the embezzled funds and fully cooperating with legal authorities.

 

 

 

While officially holding 5% of SCB’s shares, Lan was found to control over 90% through a network of family and associates. Her arrest was part of an intensified anti-corruption drive that Vietnam has pursued since 2021.

 

Founded in 1992, Lan’s company, Vạn Thịnh Phát, is a major player in Vietnam’s real estate scene, reputed for owning prime properties like Times Square Saigon, Windsor Plaza Hotel, and Sherwood Residence Hotel, where Lan resided before her arrest.

 

The appeals trial is set to continue until April 21, determining if Lan’s sentences will be upheld or modified, reported Vietnam News.

 

-- 2025-03-25