Vietnamese Real Estate Tycoon Awaits Death Sentence Appeal Over $12.5 Billion Fraud

Lan's fraud affected 36,000 investors and led to billions in losses.

By Thea Felicity

Oct 17 2024, 09:51 AM EDT

Vietnamese Billionaire Truong My Lan Sentenced to Death in Biggest Corruption Cases in History — Vietnamese property tycoon Truong My Lan (C) looks on at a court in Ho Chi Minh city on April 11, 2024. A top Vietnamese property tycoon could face the death penalty when she and dozens of other co-accused face verdicts on April 11 in one of the country's biggest fraud cases over the embezzlement of USD 12.5 billion. STR/AFP via Getty Images

In April, Truong My Lan, linked to one of Vietnam's most surprising fraud cases, was handed a death sentence. Not long ago, she was also given an extra life sentence on top of her previous penalties.

Vietnam's anti-corruption drive exposed that Truong acquired properties with value in the billions through fraudulent ways. Her scam adds up to $12.5 billion, which is about 3% of the nation's GDP.

Per reports from AP News, the Ho Chi Minh City court had to split her trials because there were so many charges. Vietnam has already issued around 2,000 death sentences as part of its campaign, with 400 people executed, mostly for drug and murder crimes. Whether Truong's lethal injection will go ahead is unclear, as she's filed an appeal and is waiting for the decision.

Truong My Lan's Cases

VCPost reports that Truong managed to gather billions unlawfully from almost 36,000 investors using fake bond deals. Additionally, she was found guilty of moving $18 billion out of Vietnam and making illegal transactions of more than $4.5 billion between 2012 and 2022.

Her $12.5 billion fraud, which caused $27.5 billion in losses, led to her being arrested in October 2022. This case stands out as one of the most prominent in Vietnam's current anti-corruption movement.

The Van Thinh Phat company was set up by Truong's family in 1992. It started as a small-scale venture but expanded into one of Vietnam's big real estate developers, working on luxury properties, hotels, offices, and shopping malls.

In her role as chairwoman, Truong expressed her regret and recognized the damage her actions brought to thousands of families. She worked alongside her husband, Chu Nap Kee, and 33 other partners in these illegal operations.

A teacher, who lost $36,000 in life savings due to the illegal bonds sold by Truong's firm, felt the life sentence was just but expressed hope that her death penalty might be overturned, so she could possibly repay her victims.