Vietnamese property tycoon Truong My Lan has failed in her appeal against the death sentence for orchestrating the world’s largest bank fraud. At 68, she faces a critical challenge, as Vietnamese law allows for her sentence to be commuted to life imprisonment if she can repay 75% of the embezzled amount.
In April, the trial court concluded that Truong secretly controlled Saigon Commercial Bank—Vietnam’s fifth-largest lender—and withdrew loans and funds over more than a decade through a network of shell companies, totaling $44 billion (£34.5 billion). Prosecutors determined that $27 billion was misappropriated, with $12 billion falling under the most severe category of embezzlement, leading to her death sentence.
This verdict was both rare and startling, making her one of the few women in Vietnam sentenced to death for a white-collar crime. On Tuesday, the court affirmed there was no basis to reduce her sentence. However, she may still avoid execution by returning $9 billion, which is three-quarters of the embezzled amount. This isn’t her final option for appeal, as she can still request amnesty from the president.
During her trial, Truong displayed defiance at times, but throughout the recent appeal hearings, she appeared more remorseful. She expressed embarrassment over the burden she placed on the state and conveyed her sole focus on repaying what she had taken.
Truong My Lan, pictured in court on Tuesday, could still avoid execution
Born into a Sino-Vietnamese family in Ho Chi Minh City, Truong My Lan began her career as a market stall vendor, selling cosmetics alongside her mother. Following the economic reforms introduced by the Communist Party in 1986, she started investing in land and property. By the 1990s, she had amassed an extensive portfolio of hotels and restaurants.
When she was convicted and sentenced in April, she was serving as the chairwoman of the prominent real estate firm Van Thinh Phat Group. Her conviction marked a significant moment in the “Blazing Furnaces” anti-corruption campaign led by then-Communist Party Secretary-General Nguyen Phu Trong.
All 85 remaining defendants in the case were also convicted. Four received life sentences, while the others, including Truong My Lan’s husband and niece, were handed prison terms ranging from 20 years to three years suspended.
To prevent a broader banking crisis, the State Bank of Vietnam is believed to have spent billions of dollars recapitalizing Saigon Commercial Bank. Prosecutors argued that her crimes were “enormous and unprecedented,” leaving no room for leniency.
Truong My Lan’s lawyers have stated that she is working diligently to secure the $9 billion required to potentially reduce her sentence. However, liquidating her assets has proven challenging.
Some of her holdings are luxury properties in Ho Chi Minh City, which could, in theory, be sold relatively quickly. Others consist of shares or stakes in various businesses or property projects.
In total, the state has identified over a thousand different assets connected to the fraud, all currently frozen by authorities. The BBC understands that the tycoon has also sought loans from friends to help meet the financial target.
Truong My Lan defrauded Saigon Commercial Bank, one of Vietnam’s biggest lenders
Her lawyers have appealed to the judges for leniency on financial grounds, arguing that her death sentence significantly hampers her ability to negotiate favorable sales of her assets and investments, making it challenging to raise the $9 billion needed. They contend that she would be in a better position to do so if her sentence were commuted to life imprisonment.
“The overall value of her holdings actually surpasses the required compensation amount,” lawyer Nguyen Huy Thiep stated to the BBC before her appeal was denied. “However, selling these assets requires time and effort, as many are real estate properties that take time to liquidate. Truong My Lan hopes the court will provide the most favorable conditions for her to continue making compensation.”
Few expected the judges to be swayed by these arguments. Now she faces a race against time to secure the necessary funds before facing execution.
Vietnam keeps details about the death penalty confidential, and the government does not disclose how many individuals are on death row. However, human rights organizations estimate there are over 1,000, making Vietnam one of the world’s most prolific executioners.
While there are often lengthy delays, sometimes spanning years, before executions are carried out, prisoners receive very little notice. If Truong My Lan can recover the $9 billion before her sentence is executed, it’s likely her life will be spared.
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