Vietnam’s court has ruled that the assets of convicted real estate tycoon Truong will remain frozen for victim compensation

HCM CITY: The assets of convicted real estate magnate Truong My Lan, chairman of the Vạn Thinh Phat Group, including assets in businesses and real estate, will remain frozen to allow compensation for 36,000 victims as authorities try to crack down on the country’s worst financial fraud to untangle Vietnam.

The HCM City People’s Court ruled on Thursday that most of Lan’s assets will remain confiscated as part of efforts to compensate the victims.

This includes its 18 percent stake in a company that owns the Vietcombank – Bonday – Ben Thanh Building, one of the tallest skyscrapers in HCM City.

In addition, the list of confiscated assets includes its shares worth VNĐ4.5 trillion in property developer Ngoc Vien Dong and VNĐ600 billion (US$23.8 million) in FWD Insurance.

Regarding “The Spirit of Saigon” construction project in District 1 of HCM City, the court noted that VNĐ4 trillion of these funds came from embezzlement in Saigon, even though Lan had paid VNĐ15.7 trillion ($624 million) to the Bitexco Group to acquire it. Commercial Bank (SCB).

Therefore, the court ordered the police to continue investigating the circumstances surrounding this transaction due to discrepancies in the information provided.

However, the judges ordered the release of a property located at Lieu Giai 29 in Hanoi, owned by Lan’s daughter, as it was deemed not related to the case.

In addition, the court lifted the freeze on the bank accounts of Lan’s husband, Eric Chu, after he returned the laundered VNĐ33 billion.

An account with VNĐ10 billion belonging to Lan’s brother has also been unblocked. However, accounts worth a total of VNĐ100 billion belonging to other family members remain subject to the freeze.

After a month-long trial, the court sentenced Lan to life imprisonment for crimes including fraud, money laundering and illegal cross-border currency transfer, adding to her previous death sentence for embezzlement.

The court found Lan guilty of defrauding nearly VNĐ31 trillion ($1.23 billion) from some 36,000 bond investors, laundering VNĐ445.7 trillion and illegally transferring $4.5 billion abroad.

Between 2018 and 2020, Lan, working with executives from SCB and the Vạn Thịnh Phát Group, used four companies to issue 25 fraudulent bond tranches, according to court findings.

The plans orchestrated by Lan were facilitated by corrupt officials, including a former central bank inspector who has since been sentenced to life imprisonment for taking $5.2 million in bribes to condone misconduct at the SCB.

Funds obtained from the sale of the fraudulent bonds were used to pay off debts, address the financial challenges faced by SCB and to invest in various real estate projects, unlawfully transferring significant amounts abroad.

Lan promised to use all her assets to compensate the victims of her fraudulent activities.

She was sentenced to death in April at an earlier trial for embezzling VNĐ677 trillion from SCB; however, she has appealed that verdict. – Vietnam News/ANN