Vietnamese Property Tycoon Has to Raise $9bn for the Government or Face Execution

  • Truong My Lan embezzled $12.5bn over a ten-year period
  • She must raise three-quarters of that cash to avoid execution
  • The property tycoon is selling her assets and investments
Injection with wooden gavel
A property tycoon in Vetnam has to raise $9bn to avoid death by lethal injection. [Image: Shutterstock.com]

The race of her life

A property tycoon in Vietnam is in the midst of the most important race of her life. She must raise $9bn for the government or she will face execution for carrying out the world’s biggest case of bank fraud.

she will face lethal injection unless she can return three-quarters of the cash

Truong My Lan was given a death sentence and lost her appeal against that ruling on Tuesday. This means that she will face lethal injection unless she can return three-quarters of the cash that she embezzled. A judge has ruled that this would reduce her sentence to life imprisonment.

During her trial in April this year, the court found that 67-year-old Truong had secretly controled Saigon Commercial Bank and took out loans and cash of more than $44bn over a decade through a web of shell companies. Of that amount, $12.5bn was judged to be embezzled.

The defendant’s lawyer said she was working as fast as she could to amass the $9bn by selling assets and asking for loans from friends.

A shocking crime

Truong My Lan’s sentencing has shocked many. She is one of very few women to have received the death penalty in Vietnam for white-collar crime. That said, the number of executions in Vietnam is thought to be high. The country keeps the exact amount secret, but human rights groups believe 1,000+ people are on death row.

The property tycoon’s crimes caught the world’s attention though. The prosecutors in the case deemed her embezzlement “huge and without precedent.” The Vietnamese State had to spend billions of dollars to recapitalise Saigon Commercial Bank to prevent a banking panic.

Truong My Lan entered into the world of business working as a market stall vender in her youth. She began buying land and property from 1986, after the Communist Party introduced economic reform. She owned a large number of hotels and restaurants by the 1990s, and became the chairwoman of a prominent real estate firm, Van Thinh Phat Group.

She wasn’t the only person sentenced in association with the crimes either. In total, 85 people were convicted, with four sentenced to life. Truong My Lan’s husband and niece were among the defendants who received lesser sentences.

Apologetic on the stand

In her appeal court appearance, Truong My Lan expressed her embarrassment at being such a drain on the state. She also affirmed a desire to pay back everything that she owed to the government as soon as possible.

The total of her holdings actually exceeds the required compensation amount”

Her lawyers stated that it was more difficult for her to raise the funds while under threat of death. They claim that it makes it harder for her to negotiate a good price for the sale of her assets and investments. “The total of her holdings actually exceeds the required compensation amount,” her lawyer told the BBC. “However, these require time and effort to sell.”

She still has the chance for another appeal and executions often face many years of delays, so she will likely have considerable time to raise the cash.

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