Trương Mỹ Lan, former chairwoman of Vạn Thịnh Phát Group, at her appeals trial at the HCM City People’s High Court on Tuesday. — VNA/VNS Photo

 HCM CITY — Vietnamese real estate magnate Trương Mỹ Lan's appeal against her death sentence for a billion-dollar fraud has been rejected due to its "unprecedented consequences," but she may avoid execution by repaying most of the embezzled assets.

The HCM City People’s High Court on Tuesday rejected the appeal of 68-year-old Lan, convicted of embezzling funds from Saigon Commercial Bank (SCB) in Việt Nam’s worst corruption scandal.

In her formal handwritten appeal submitted to the court earlier, Lan said that the death sentence was “excessively severe and harsh,” and she urged the court to adopt a more "lenient and humane approach.”

Under Vietnamese law, despite the death penalty, Lan may avoid execution by returning three-quarters of the embezzled assets and cooperating with authorities in addressing the consequences.

Besides Lan, a total of 47 defendants sought reduced sentences during the appeal trial that commenced in early November.

The court also rejected the appeal of Đỗ Thị Nhàn, chief banking inspector of the central bank, who received a life sentence for accepting a US$5.2 million bribe from Lan to conceal SCB's financial problems.

"Despite returning the bribe and contributing VNĐ1 billion for restitution, her actions were deemed a serious offence, resulting in losses exceeding VNĐ500 trillion for the private lender," the court noted.

However, the court accepted to reduce the sentences for several defendants, including Lan's husband, Eric Chu, whose sentence was reduced from nine to seven years, and her niece, Trương Huệ Vân, whose sentence was cut from 17 to 13 years for their involvement in the case.

Nguyễn Cao Trí, chairman of Capella Holdings, had his sentence reduced from eight years to six years for defrauding Lan of VNĐ1 trillion.

Several former senior leaders of SCB and Vạn Thịnh Phát also received reduced sentences for lending regulation violations due to their efforts to mitigate circumstances.

Lan was sentenced to death in April for embezzling $27 billion from SCB, an amount equivalent to 6 per cent of Việt Nam's GDP in 2023.

She also received a life sentence in a separate trial in October for “fraudulent appropriation of assets” through the issuance of counterfeit bonds and illicit cross-border money transfers, among other offences.

Defendants at the court on Tuesday. — VNA/VNS Photo

Recent statistics indicated that at least 42,000 victims, who invested in fraudulent bonds issued by the bank, suffered substantial financial losses, resulting in nationwide shock and unprecedented protests from affected individuals.

The court has mandated that Lan compensate the full amount of the fraudulently obtained funds.

Lan, founder of real estate developer Vạn Thịnh Phát, asserted in court that “the quickest way” to reimburse the misappropriated funds would be to “liquidate SCB and sell our assets to repay the State Bank of Vietnam (SBV) and the public.”

Although she officially held only 5 per cent of SCB’s shares, the court determined that she effectively exercised control over more than 90 per cent through a network of family, friends, and associates. — VNS