Trương Mỹ Lan, 68, chairwoman of real estate developer Vạn Thịnh Phát, has been sentenced to death for bribery, violating bank regulations and embezzlement. VNA/VNS Photo

Bồ Xuân Hiệp

HCM CITY — Authorities have assured the public any money and assets recovered from the Vạn Thịnh Phát-SCB scandal will be returned to the rightful owners, particularly the bondholders who were deceived into purchasing bonds through a private lender.

The police have said their current focus is on returning the recovered funds and assets to those who have suffered losses in the scandal, considered the largest in Việt Nam’s history.

Trương Mỹ Lan, 68, chairwoman of real estate developer Vạn Thịnh Phát, who has been sentenced to death for financial fraud at Saigon Commercial Joint Stock Bank (SCB) is believed to be the mastermind behind the fraudulent bond activities at the lender.

According to investigators, Lan’s over 1,000 fake companies under Vạn Thinh Phát group conducted fraudulent bond issuances totaling VNĐ30 trillion (US$1.24 billion) and sold to over 42,000 victims through SCB, mostly depositors at the lender.

Since Lan’s arrest in October 2022, victims have not received any principle and interest payments through their SCB accounts.

The central bank had assured the public that all savings accounts are secure, but it refused to guarantee bonds purchased through the lender.

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

Authorities have seized over VNĐ590 billion and nearly $15 million, along with freezing millions worth of assets associated with the chairwoman.

They have taken inventory of around 1,240 property developments owned by Lan, mainly in prime locations in HCM City and other provinces.

They have identified eight properties in Quảng Ninh Province, 857 million shares at SCB, over 137 million shares in five companies, a yacht, two ships, 19 cars, among other assets.

They have also frozen 42 accounts linked to Trương Mỹ Lan and other defendants in the scandal, holding nearly VNĐ1.9 trillion and over $8.4 million.

Transactions totaling almost VNĐ790 billion associated with a company under Vạn Thịnh Phát Group have also been prevented at SCB.

During the prosecution, nearly VNĐ55.5 billion was seized, and an additional VNĐ73 billion was paid by Lan and other defendants during the trial.

"These funds will be prioritised for repayment to the bond victims," the police said.

Authorities continue calling on over 42,000 victims in possession of bonds from the fraudulent issuances to come forward with information and related documents.

Formerly known as Saigon One Tower, the IFC One Saigon was acquired in 2021 by Viva Land, a subsidiary of Vạn Thịnh Phát Group. Construction resumed briefly after years but has stalled again following the arrest of the chairwoman of property company Vạn Thịnh Phát. — VNS Photo Bồ Xuân Hiệp

Upcoming trial

Authorities have announced an upcoming trial that will address the illegal issuance of bonds linked to Trương Mỹ Lan and her company, Vạn Thịnh Phát.

While the exact date of the second trial has not been confirmed, it is expected to begin shortly after the first trial ended on Thursday, local media reported.

In the previous trial, Lan was sentenced to death for bribery, violating banking regulations, and embezzlement. She was also ordered to pay compensation of VNĐ673.8 trillion ($27 billion) to the lender.

Her Chinese husband, Eric Chu Nap-kee, chairman of the board of Times Square Vietnam Joint Stock Company, received a nine-year prison sentence for violating banking regulations at Lan's direction.

Lan's niece, Trương Huệ Vân, CEO of Windsor Property Management, was sentenced to 17 years in prison for aiding Lan in committing the crimes.

Other SCB leaders and State officials involved in the scandal also received varying sentences ranging from three years to life for embezzlement and violating banking regulations.

The headquarters of Saigon Commercial Joint Stock Bank (SCB) in HCM City, the largest private lender by assets in Việt Nam. VNS Photo Bồ Xuân Hiệp

According to the police, Lan did not hold any positions at SCB but owned a 91.5 per cent stake under various names (her relatives and friends) in the bank.

Between 2012 and 2022, she received over 2,500 loans worth over VNĐ1 quadrillion (around $44 billion) from the bank, accounting for 93 per cent of all the loans it provided, using a network of over 1,000 fake companies affiliated with Vạn Thịnh Phát.

She paid bribes to various officials to hide the bank's financial troubles, including Đỗ Thị Nhàn, former head of the central bank's department of inspection and supervision, who has received a life imprisonment for accepting $5.2 million in bribes, the largest amount in the nation's history.

Lan was arrested in October 2022 as part of an anti-corruption campaign in Việt Nam that has been intensified since 2021.

In 1992, Lan and her family founded Vạn Thịnh Phát, which was one of the country's most prominent real estate companies.

The company operates in commerce, hospitality, and real estate, owning significant properties in prime locations, primarily in HCM City.

They include the 39-story Times Square Saigon, Windsor Plaza Hotel, and the Sherwood Residence hotel, where Lan was residing before her arrest. — VNS

Bondholders who were deceived into purchasing bonds through private bank SCB peacefully gather in front of the Ministry of Finance office in Hà Nội at the end of 2023 to demand a resolution to the scandal, holding the agency responsible for the mismanagement of corporate bond issuance. — VNS Photo Bồ Xuân Hiệp