Truong My Lan, a prominent Vietnamese real estate tycoon, has lost her appeal against the death penalty for orchestrating what has been described as the largest bank fraud in history. At 68 years old, she now faces a critical battle to save her life. Under Vietnamese law, her death sentence could be commuted to life imprisonment if she manages to repay 75% of the misappropriated funds.
In April, a court found that Truong My Lan had secretly controlled Saigon Commercial Bank, Vietnam’s fifth-largest lender, for over a decade. Using a network of shell companies, she siphoned a staggering $44 billion through illicit loans and cash withdrawals. Prosecutors determined that $27 billion of this was misappropriated, with $12 billion classified as embezzled — a crime that resulted in her death sentence.
Her conviction was shocking, not only because of the vast scale of the fraud but also due to her status as one of the few women in Vietnam to ever face the death penalty for financial crimes. Despite her appeal, which aimed to challenge the harshness of the sentence, the court upheld its earlier decision. However, her life could still be spared if she raises $9 billion, representing three-quarters of the embezzled amount.
During her trial, Truong My Lan displayed defiance, but in the recent appeal hearings, she appeared remorseful. She expressed embarrassment over the financial damage she had caused the state and reiterated her commitment to repaying the stolen funds.
A Meteoric Rise Turned Downfall
Born into a Sino-Vietnamese family in Ho Chi Minh City, Truong My Lan started her career modestly, selling cosmetics alongside her mother at a market stall. Vietnam’s economic reforms in 1986 presented opportunities, and she began investing in land and property. By the 1990s, her portfolio had grown to include numerous hotels and restaurants. At the time of her conviction, she was the chairperson of Van Thinh Phat Group, a high-profile real estate company.
Her downfall came as part of Vietnam’s sweeping “Blazing Furnaces” anti-corruption drive, spearheaded by then-Communist Party Secretary-General Nguyen Phu Trong. Alongside her, 85 other defendants faced charges related to the fraud. Four received life sentences, while the rest were handed prison terms ranging from three to 20 years. Even her family members were implicated, with her husband receiving a nine-year sentence and her niece sentenced to 17 years in prison.
The fraud’s fallout prompted the State Bank of Vietnam to inject billions of dollars into Saigon Commercial Bank to prevent broader financial instability. Prosecutors labeled her crimes as unprecedented and argued that they warranted no leniency.
The Struggle to Raise $9 Billion
Despite the legal setbacks, Truong My Lan’s lawyers are working to secure the $9 billion needed to commute her sentence. The state has frozen over a thousand assets linked to her fraud, making the process of liquidating them highly challenging. Her holdings include luxury properties in Ho Chi Minh City, which could potentially sell quickly, as well as stakes in various businesses and property projects. However, selling such assets is complex and time-consuming.
Lawyer Nguyen Huy Thiep explained that the total value of her assets exceeds the required compensation, but logistical challenges and the stigma of her death sentence have hindered negotiations for fair prices. He argued that converting her sentence to life imprisonment would create more favorable conditions for asset sales, enabling her to repay the embezzled funds more efficiently. However, the court rejected these arguments during her appeal.
In addition to liquidating assets, Truong My Lan has reportedly sought loans from friends and associates to meet the compensation target.
A Race Against Time
Truong My Lan’s future now depends on her ability to recover the funds before the execution is carried out. Vietnam does not publicly disclose the number of people on death row, but human rights groups estimate that the figure exceeds 1,000. The country is known for its high execution rates, though sentences often take years to be implemented. When the time comes, prisoners are typically given very short notice.
If she succeeds in raising the $9 billion, her life will likely be spared. However, the scale and complexity of her fraud have placed her in a precarious position, leaving her fate hanging in the balance.
