Bondholders who were deceived into purchasing bonds through private bank SCB gather in front of the Ministry of Finance office in Hà Nội at the end of 2023 to demand a resolution to the scandal. — VNS Photo Bồ Xuân Hiệp

HCM CITY — The HCM City High People’s Court on Tuesday began the appeals trial for Vietnamese real estate tycoon Trương Mỹ Lan and 27 accomplices in Việt Nam’s largest financial fraud case.

The 69-year-old former chairwoman of Vạn Thịnh Phát Group is represented by eight defence lawyers, up from four previously.

In October last year, she was sentenced to life in prison for fraud, 12 years for money laundering, and eight years for illegally transporting currency.

She is appealing her life sentence for embezzling over VNĐ30 trillion (US$1.18 billion) from bondholders, laundering over VNĐ445.7 trillion ($17.5 billion), and illegally transporting $4.5 billion across borders.

The scam affected at least 42,000 victims, leading to significant financial losses and unprecedented protests across the nation.

The court had ordered Lan to repay the full amount that she had fraudulently obtained.

Authorities have committed to returning recovered funds to affected bondholders.

They have seized millions in assets linked to Lan, including properties, shares, and vehicles, and frozen accounts valued in the millions for repayment to bond victims.

In a recent development, authorities announced a compensation plan for bondholders.

The Department of Civil Judgment Enforcement has provisionally seized over VNĐ8 trillion ($315 million) for this purpose and is managing these assets per judicial rulings.

To assist bondholders, a 24-hour hotline at 1900 599802 has been established.

Defendant Trương Mỹ Lan at the HCM City High People's Court on March 25. — VNA/VNS Photo

The department is also working with Tân Việt Securities Company to guide them on required documentation for compensation, including ID and bank details.

In a separate trial, Lan was sentenced to death in April last year for embezzling $27 billion from Saigon Commercial Bank (SCB), equivalent to 6 per cent of Việt Nam’s GDP in 2023.

She also appealed that sentence but her appeal was denied earlier this month due to the “unprecedented consequences” of the fraud.

Under Vietnamese law, she could, however, avoid execution by returning 75 per cent of the embezzled funds and cooperating with authorities.

Although Lan officially held only 5 per cent of SCB’s shares, the court found she controlled over 90 per cent through a network of family members and associates.

Lan’s arrest was part of an anti-corruption campaign in Việt Nam that has intensified since 2021.

In 1992, Lan and her family founded Vạn Thịnh Phát, which was one of Việt Nam’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.

The appeals trial is expected to last until April 21. — VNS