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Asia World

Vietnamese Real Estate Tycoon Faces Life Sentence in New Fraud Conviction Amidst Crackdown

Vietnamese Real Estate Tycoon Faces Life Sentence in New Fraud Conviction Amidst Crackdown
Source: VNExpress via AP
  • PublishedOctober 18, 2024

Truong My Lan, a prominent Vietnamese real estate tycoon, was found guilty on Thursday of fraudulently obtaining billions of dollars worth of property, The Associated Press reports.

This conviction adds to her legal troubles as she already faces a death sentence in a separate case.

The latest verdict, handed down by the Ho Chi Minh City court, carries a maximum penalty of life imprisonment. Lan was previously convicted in April of orchestrating a massive $12.5 billion financial fraud, nearly 3% of Vietnam’s GDP, through her control of a major bank. She was sentenced to death by lethal injection in that case.

This trial focused on allegations that Lan raised $1.2 billion from 36,000 investors through illegal bond issuance. She was also convicted of siphoning off $18 billion gained through fraud and illegally transferring over $4.5 billion in and out of Vietnam between 2012 and 2022.

The cases were separated due to the extensive nature of the allegations against Lan. Details regarding the verdicts for the 33 co-defendants are not yet available.

This conviction is a significant development in Vietnam’s ongoing anti-corruption crackdown, which has intensified since 2022, targeting both high-ranking officials and prominent business figures. The Communist Party’s “blazing furnace” campaign has seen numerous officials, including former President Vo Van Thuong, implicated in corruption and forced to resign.

The campaign, which began in 2013, expanded to the private sector in 2018, leading to the arrest of several prominent business owners. The case underscores the government’s determination to fight corruption within both the public and private sectors.

Truong My Lan and her family established the Van Thinh Phat company in 1992, capitalizing on Vietnam’s shift from a state-controlled economy to one embracing private enterprise and foreign investment. Lan’s entrepreneurial journey began with her mother, a Chinese entrepreneur, selling cosmetics in Ho Chi Minh City’s oldest market, according to state-run media outlet Tien Phong.

Van Thinh Phat eventually became one of Vietnam’s wealthiest real estate developers, boasting a portfolio of luxury residential buildings, offices, hotels, and shopping centers, establishing Lan as a key player in the country’s financial industry.

Written By
Michelle Larsen