The construction of a building near Bến Thành Market by Viva Land, a subsidiary of Vạn Thịnh Phát Group, stalled at the end of 2022 following the arrest of the chairwoman of Vạn Thịnh Phát Group. — VNS Photo Bồ Xuân Hiệp

HCM CITY — Several companies associated with property developer Vạn Thịnh Phát, whose chairwoman is currently facing trial for financial fraud, have been fined for fraud related to bond issuance and trading worth trillions of Vietnamese đồng.

The State Securities Commission (SSC) has fined An Đông Investment Group Corp, a subsidiary of Vạn Thịnh Phát Group, VNĐ92.5 million for not submitting required information to the Hanoi Stock Exchange, including financial statements, reports on capital usage, principal payments, and bond interest.

Other companies under the Vạn Thịnh Phát Group were also penalised by the SSC for similar violations, including Quang Thuận Real Estate Investment Joint Stock Company, Phú Châu Investment Development Joint Stock Company, and Norah Interior Design and Decoration Corporation.

While Tân Việt Securities, the bond issuer and consultant for these companies, had promised investors that they would be paid the principal and interest when their bonds matured, investors have not received any payments, including principal and interest, since the chairwoman was arrested at the end of 2022.

Trương Mỹ Lan, 68, chairwoman of Vạn Thịnh Phát Group, is facing accusations of fraud in bond issuance and trading. The fraud involved 25 bond issuances worth VNĐ30 trillion (US$1.24 billion) through fake firms.

According to the Police, a large number of victims, mainly depositors of Saigon Commercial Joint Stock Bank (SCB), were deceived into purchasing these bonds through the lender.

Lan, who has a significant stake in SCB, Việt Nam’s largest private lender by assets, has been implicated in the fraudulent activities, including manipulation of the lender’s operations.

Due to the ongoing investigations, specific details of the fraudulent activities have not been disclosed. However, authorities are urging victims of the bond fraud to come forward with relevant information, documents, and contracts to assist in the investigation.

In addition to bond fraud, Trương Mỹ Lan is also facing charges of bribery, violating banking regulations, and embezzlement by misappropriating trillions of Vietnamese đồng from the bank.

The chairwoman, a Chinese-Vietnamese entrepreneur married to a wealthy Hong Kong property developer, established Vạn Thịnh Phát in 1992.

The company started in the restaurant and hotel industry before expanding into property development, with several prominent projects in prime locations in the city. — VNS

An officer at Bình Thạnh District police assists a victim in reporting private lender SCB for deceiving depositors, especially elderly customers, by selling corporate bonds from fake companies affiliated with the Vạn Thinh Phát group. — VNS Photo Bồ Xuân Hiệp