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Loan scam: bank clerks get 30 years

Update: June, 18/2015 - 09:33

HCM CITY (VNS) — Four clerks from the Binh Chanh branch of the State-owned Agribank in HCM City (Agribank Binh Chanh) were yesterday handed down jail sentences totalling 30 years in a loan scam which caused a loss of VND19.25 billion (US$870,000).

Duong Thanh Cuong, who recruited the clerks, was sentenced to life imprisonment and ordered to reimburse the funds.

In 2007, Duong Thanh Cuong set up two companies and made up projects as a pretext to access bank loans.

He forged papers and raised the value of a land plot which was worth only VND3 billion ($137,000) to VND47 billion ($2.15 million), which he used as collateral for bank loans.

Taking advantage of personal relations with insiders at Agribank Binh Chanh, Cuong managed to get a loan worth VND19.25 billion ($870,000).

After that, the companies Cuong had opened declared bankruptcy.

Cuong is said to have pocketed VND15 billion ($687,000).

Cuong was sentenced on the charge of ‘extorting assets by means of cheating'.

Four clerks from the Agribank Binh Chanh were yesterday handed down jail sentences totalling 30 years in a loan scam which caused a loss of US$870,000. — Photo thanhnien

Among the bank clerks who helped Cuong was Ly Van Chuc, who died of cancer in 2012 and was not mentioned at the trial.

For the other four offenders, the HCM City People's Court convicted them of ‘violating lending regulations in the operation of a credit institution".

They were found guilty of having ignored the required procedure for appraising property used as collateral.

They were named as Nguyen Van Loi (eight years in jail), Nguyen Thi Thanh Nga (eight years in jail), Tran Thi Hoang Yen (seven years in jail) and Hoang Nhu Bich (seven years in jail).

Apart from Loi, who was former deputy director of Agribank Binh Chanh, the other three women were former deputies of the branch's business planning division. — VNS

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