Vietnam, a communist country, has long battled with fraud and corruption. However, the recent revelation of a staggering financial fraud worth 44 billion dollars has left the world in shock.
Truong My Lan, the mastermind behind this audacious act of embezzlement from Saigon Commercial Bank, one of Vietnam’s largest banks, has been handed a death sentence by the country’s court.
This trial, linked to the largest bank fraud in history, has captivated global attention, underscoring the severity of the issue.
Who is Truong My Lan?
Truong My Lan, a wealthy 67-year-old woman and owner of multiple property development businesses, has been found guilty of embezzling a staggering $44 billion over an 11-year period.
This case, which is one of the largest bank frauds ever committed in the world, has garnered global attention.
It serves as a stark reminder that fraud and corruption are not limited to any particular political or economic system, and that all countries must remain vigilant in their efforts to combat these crimes.
The authorities have made efforts to ensure maximum punishment for those involved in this bank fraud, and they have given special media attention to this case to create fear and deter such incidents from happening in the future.
The main suspect in this case is a wealthy woman who owns a property development business. She is accused of defrauding Saigon Commercial Bank, considered one of Vietnam’s largest banks.
A $44 billion fraud in 11 years
The magnitude of the fraud, which saw a staggering $44 billion siphoned off over an 11-year period, is truly alarming.
The financial impact on the Vietnamese government has been severe, with lawyers estimating that a significant portion of the funds, around $27 billion, may never be recovered.
This loss has left the government in a precarious financial situation, underscoring the urgent need for stronger safeguards against such large-scale fraud.
2700 people testify in the case
Over 2700 witnesses were called for this case, and more than 200 lawyers directly worked on behalf of the government. This makes the case a massive undertaking.
Local media reported that the documents involved in the case filled 104 boxes and weighed six tons. Eighty-five suspects, including Truong My Lan, were charged with the scam.
The court found Truong My Lan, the primary suspect, directly responsible for the fraud. It was determined that the scam took place due to her full involvement and direction. As a result, she was sentenced to death.
Pledge of the General Secretary of the Communist Party
Nguyen Phu Trong, the General Secretary of the Communist Party of Vietnam, has made a resolute pledge to eradicate fraud and corruption.
In a comprehensive campaign, he has forced two presidents and two deputy prime ministers to resign, and legal action has been initiated against over 100 officials. Several guilty parties have been handed prison sentences.
The most significant case in this crusade involved exposing a money fraud scheme and imposing the death penalty on the culprits, demonstrating the seriousness of the government’s commitment.
The girl who sold perfume in a small shop
Truong My Lan’s journey from a humble girl selling perfume in a small shop to a billionaire is a tale of audacity and intrigue.
As Vietnam’s economy surged in 1986, she seized the opportunity, shifting her focus to the real estate market and making several astute investments. By 1990, she had already amassed a portfolio of hotels and restaurants.
Her business ventures proved to be remarkably successful, catapulting her to billionaire status by 2011.
Saigon Commercial Bank and Fraud
Several banks in Vietnam were on the verge of collapsing but were allowed to consolidate and continue operating. One of these banks is Saigon Commercial Bank, which started operating as part of the consolidation program.
Vietnamese law prohibits anyone from owning more than 5% of the shares of any bank in the country. However, during the investigations, it was revealed that a woman acquired shares in Saigon Commercial Bank through fake companies and her relatives.
What the investigation revealed
Investigations have revealed that Truong My Lan was not just a passive beneficiary of the fraud, but a key player in the scheme. She holds over 90% of the shares in Saigon Commercial Bank and has appointed her friends as managers, a clear abuse of power.
Moreover, she used her network of fake companies to secure large loans from the bank, a move that has severely impacted its customers. Lawyers have submitted a report to the court, stating that the loans she obtained account for a staggering 93% of the bank’s total loans.
