HCM CITY — The Investigation Police Bureau for Economic Management Order Offences (C46) last Friday began criminal proceeding against Hứa Thị Phấn, a former shareholder of Đại Tín Bank (Trust Bank), now Việt Nam Construction Bank (VNCB), and searched her house and office.

Previously, at a trial over the losses of more than VNĐ9 trillion (US$395 million) at VCNB, the HCM City People’s Court decided to launch criminal proceeding against Phấn for “violating the lending regulations of credit institutions”, and “deliberately violating State regulations on economic management, causing severe consequences”.

She later appealed against the charges, but the court rejected the appeal.

Phấn was accused of wrongdoings that resulted in a negative VNĐ2.8 trillion ($122.89 million) in owner’s equity and cumulative losses of over VNĐ6.6 trillion ($289.67 million) at Đại Tín Bank before it was sold to VNCB former chairman Phạm Công Danh.

Phấn was reportedly behind Đại Tín Bank’s provision of secured and non-secured loans for 29 individuals. She also raised the value of mortgaged assets to withdraw money from Đại Tín Bank.

In addition, in January, seven former officials of Đại Tín Bank, including former board chairman Hoàng Văn Toàn and former general director Trần Sơn Nam, were arrested on charges of “deliberately violating State regulations on economic management, causing severe consequences”.

Toàn and other officials of Đại Tín Bank’s credit department gave loans to companies named Đại Hoàng Phương and Thịnh Quốc, resulting in losses of hundreds of billions of Vietnamese đồng and violated prevailing regulations.

In 2012, Đại Tín Bank was restructured and rebranded into VNCB and Phạm Công Danh became chairman of the bank’s management board.

Danh was later accused of devising scams to steal from the bank, including setting up fraudulent companies and fake documents to take out huge loans, which caused losses of over VNĐ9 trillion. — VNS