Vietnamese Real Estate Tycoon Truong My Lan Faces Second Trial for $12.5 Billion Financial Fraud
Truong My Lan, chair of Van Thinh Phat, is being tried for orchestrating Vietnam's biggest ever financial fraud case and for illegally controlling a major bank.
Truong My LanVan Thinh PhatFinancial FraudMoney LaunderingReal EstateReal EstateSep 20, 2024
Her arrest and conviction was one of the highest profile cases in an anti-corruption drive that has intensified since 2022. The so-called blazing furnace campaign has also singed the highest echelons of Vietnamese politics and led to the resignation of a former president who was implicated in it.
Lan is being tried on fresh charges of appropriating property fraudulently and money laundering. According to a police investigation, she raised USD 1.2 billion from nearly 36,000 investors by issuing bonds illegally through four companies, state media reports say.
Investigators found 21 companies controlled by Lan's Van Thinh Phat that illegally transferred over USD 4.5 billion in and out of Vietnam between 2012-2022. She is also accused of siphoning off USD 18 billion obtained through fraud.
The case also involves 33 other defendants. It is expected to last a month.
Lan and her family established the Van Thing Phat company in 1992 after Vietnam shifted from a state-run economy to a more market-oriented approach that was open to foreign investors. She started out helping her mother, a Chinese entrepreneur, sell cosmetics in Ho Chi Minh City's oldest market.
Van Thinh Phat became one of Vietnam's richest real estate firms, with projects including luxury residential buildings, offices, hotels and shopping centers. This made her a key player in the country's financial industry.
Lan's first trial shocked many Vietnamese. Analysts said the scale of the scam raised questions about whether other banks or businesses had similarly erred, dampening Vietnam's economic outlook and making foreign investors jittery at a time when Vietnam is trying to position itself as the ideal home for businesses trying to diversify supply chains away from China.
Van Thinh Phat is a Vietnamese real estate company founded in 1992 by Truong My Lan and her family. The company has developed several luxury residential buildings, offices, hotels, and shopping centers in Vietnam.Van Thinh Phat is a leading real estate company in Vietnam, known for its luxury developments and financial expertise.
Frequently Asked Questions
What is Truong My Lan accused of?
Truong My Lan is accused of orchestrating Vietnam's biggest ever financial fraud case, amounting to USD 12.5 billion, and for illegally controlling a major bank.
What is the name of the real estate company founded by Truong My Lan?
The real estate company founded by Truong My Lan is called Van Thinh Phat.
How much money did Truong My Lan raise from investors through illegal bond issuance?
Truong My Lan raised USD 1.2 billion from nearly 36,000 investors by issuing bonds illegally through four companies.
How many companies controlled by Van Thinh Phat were found to have illegally transferred money in and out of Vietnam?
21 companies controlled by Van Thinh Phat were found to have illegally transferred over USD 4.5 billion in and out of Vietnam between 2012-2022.
What is the expected duration of the second trial?
The second trial is expected to last a month.
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