Trần Quí Thanh, 71, chairman of leading beverage manufacturer Tân Hiệp Phát, at the HCM City People’s Court on Thursday. He was sentenced to 20 years in prison for “abuse of trust to appropriate assets.” VNA/VNS Photo

HCM CITY — The HCM City People’s Court on Thursday sentenced Trần Quí Thanh, 71, chairman of beverage manufacturer Tân Hiệp Phát, to eight years in prison for “abuse of trust to appropriate assets.”

His two daughters, Trần Uyên Phương, 43, the deputy CEO of Tân Hiệp Phát, and Trần Ngọc Bích, 40, who were both involved in the illegal scheme, were given a four-year sentence in prison and a three-year suspended sentence, respectively.

The court also declared the contracts transferring assets as collateral for loans to be invalid and ordered the victims to repay the borrowed amount to the defendants.

Each defendant was also fined VNĐ100 million to be paid into the State treasury.

The trio was found guilty of misappropriating assets from four individuals, including two property projects and 35 land lots.

According to prosecutors, they illegally provided loans with collateral and then pressured borrowers into selling their assets at undervalued prices, resulting in an alleged misappropriation of VNĐ1.05 trillion (US$41.2 million).

Between January 2019 and November 2020, the three individuals illegally offered loans at a high-interest rate of 3 per cent per month and forced borrowers to sign sales contracts instead of loan agreements, with prices much lower than the actual value of the collateral.

Even after borrowers repaid their loans with interest, Thanh reportedly refused to return the assets. Claims were made that borrowers had forfeited their repurchase rights due to contract breaches.

During the investigation, the trio initially denied the allegations but later admitted to them.

Prosecutors said Thanh was the mastermind behind the scheme, with his daughters following his instructions.

Thanh and Phương were arrested in April 2023, while Bích remained free pending legal proceedings. — VNS