Trương Mỹ Lan, former Chairwoman of Vạn Thịnh Phát Group at the HCM City People’s Court on Thursday. VNA/VNS Photo Thanh Vũ

HCM CITY – After nearly a month of trial, the HCM City People’s Court on Thursday announced its verdict in the second phase of the case involving property developer Vạn Thịnh Phát Group and Saigon Joint Stock Commercial Bank (SCB).

Trương Mỹ Lan, former Chairwoman of Vạn Thịnh Phát Group, received a life sentence for "fraudulent appropriation of property," a 12-year jail sentence for "money laundering," and an eight-year jail sentence for "illegal cross-border currency transportation". The combined sentence amounts to life imprisonment.

Earlier on April 11, Lan was sentenced to 20 years behind bars for "giving bribery", 20 years for "violating lending regulations in credit institutions," and the death penalty for "embezzlement." The total sentence she must serve is the death penalty.

The remaining 33 defendants received jail sentences ranging from two to 23 years.

Among them, Trương Huệ Vân, former General Director of Vạn Thịnh Phát Group and former General Director of Windsor Property Management Group, who is also Lan’s niece, was sentenced to five years in prison for "fraudulent appropriation of property".

Chu Nap Kee Eric, former Chairman of the Board of Directors of Times Square Investment Corporation and Lan’s husband, received a two-year prison sentence for "money laundering".

Trương Khánh Hoàng, former General Director of SCB, was sentenced to 23 years in prison for his involvement in all the three charges of "fraudulent appropriation of property”, "money laundering," and "illegal cross-border currency transportation”.

According to the indictment by the Supreme People's Procuracy, Lan built a vast network of about 1,000 subsidiaries and affiliated companies under the Vạn Thịnh Phát umbrella, entrusting their management to relatives. Despite not holding any official position at SCB, Lan was its major shareholder, controlling between 85 per cent and 91.5 per cent of the shares.

Lan and her accomplices selected and appointed their relatives to key positions at the bank, formed a number of SCB units specialising in lending and disbursement at Lan’s request, established and used thousands of "ghost" companies. The group colluded with leaders of many related businesses to commit crimes, and created bogus loan profiles to withdraw money from the bank, among other acts.

From October 9, 2018 to October 7, 2022, Lan directed the creation of 2,527 fake loan records, with a total value of VNĐ1,066 trillion (US$44.4 million). As of October 17, 2022, Lan and her accomplices still owed VNĐ677.28 trillion in loans, which were all bad debts. After deducting the value of collaterals, the bad loans were valued at around VNĐ498 trillion.

As of October 7, 2022, Lan and her accomplices embezzled over VNĐ30.081 trillion from 35,824 victims, and laundered VNĐ445.747 trillion.

From 2012-2022, they illegally transported $4.5 billion across the border.

At the trial, the defendants were also demanded to pay 35,824 victims over VNĐ30.081 trillion in compensation. – VNS