Summary

Truong My Lan, a Vietnamese real estate tycoon who rose from humble beginnings, was sentenced to death after being convicted of a massive $12 billion fraud scheme. Over a decade, Lan used her controlling stake in Saigon Commercial Bank to create fake companies and illegally funnel billions in loans to her real estate projects while bribing officials. The total damages amounted to $27 billion, nearly 6% of Vietnam's 2023 GDP. While rare for financial crimes, Lan's death sentence reflects Vietnam's effort to crack down on elite corruption as it vies for foreign investment.

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In a shocking case of corporate greed and corruption, Vietnamese real estate mogul Truong My Lan has been sentenced to death after being convicted in a massive $12 billion fraud scheme.

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Lan came from humble beginnings, growing up poor and selling cosmetics on the street with her mom. But over time she developed a name for herself, becoming the chairwoman and founder of Van Thinh Phat Group, a major real estate company in Vietnam.

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​​But her empire came crumbling down when authorities uncovered her decade-long embezzlement scheme at Saigon Commercial Bank. Lan was secretly stealing billions from Saigon Commercial Bank, one of Vietnam's biggest banks.

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Court documents reveal that Lan owned over 90% of the shares in the bank, giving her near total control. She then created thousands of fake companies and used them to take out huge illegal loans and lines of credit from the bank. Not touching any real business, the money was just being funneled right into Lan's own real estate projects and her pockets.

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According to prosecutors, to cover her tracks, Lan paid off government officials with millions in bribes to ignore the shady practices and violate banking laws. Court records show the bribes were sometimes even delivered in styrofoam boxes full of cash.

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In total, prosecutors calculated Lan stole over $12 billion through her complex web of fraud, but the entire damage of her corrupt actions were closer to$27 billion, which is almost 6% of Vietnam's entire economic output in 2023.

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When Lan was finally arrested in 2022 after a crackdown on corruption, it sparked protests from people who had invested in her bank and real estate projects. Over 42,000 victims lost funds they had put into the bank's bonds and accounts.

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In an emotional final statement, Lan admitted she was "stupid" to enter the fierce world of banking. But the judges showed no mercy, stating her "violations eroded people's trust" in the government.

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After a 5-week trial involving 85 other defendants, Lan received the ultimate punishment under Vietnamese law: execution by lethal injection. Although, under Vietnam’s criminal code, Lan is eligible to appeal the verdict within 15 days.

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While the death penalty is permitted for economic crimes in Vietnam, it is extremely rare, especially for a wealthy elite businessperson like Lan.

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The harsh sentence signals Vietnam's commitment to fixing its corruption issues as it seeks to attract more foreign businesses leaving China. But for Lan, it's a brutal ending to what was once a celebrated rags-to-riches story of entrepreneurial success that spiraled into greed on an epic scale.

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Vietnam tycoon sentenced to death in $12.5 billion fraud case | Reuters 

Vietnam property tycoon Truong My Lan sentenced to death in whopping $27 billion fraud case | CBS News

What to know about the real estate tycoon sentenced to death in Vietnam’s largest fraud case | AP News

Vietnamese Real Estate Tycoon Sentenced to Death in $12 Billion Fraud Case | NYT