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Court sentences former Trust Bank senior advisor to 30 years in jail

Update: June, 01/2018 - 09:00
Twenty-eight former officials of Đại Tín Bank were sentenced to three to 30 years in jail by the HCM City People’s Court on May 31 after a three-week trial.— VNA/VNS Photo Thành Chung

HCM CITY — Twenty-eight former officials of Đại Tín Bank (Trust Bank - now the Việt Nam Construction Bank) charged with "abusing trust to appropriate property" and "intentionally violating State regulations on economic management and causing serious consequences" were sentenced to three to 30 years in jail by the HCM City People’s Court on May 31 after a three-week trial.

The key defendant, Hứa Thị Phấn, former senior advisor of the management board of Trust Bank, and former chairwoman of the management board of Phú Mỹ Investment and Development JSC, did not appear at the court because of poor health.

She was sentenced to 30 years in jail and must pay compensation of VNĐ16.7 trillion (US$733 million) on both charges.

All of Phấn’s assets and shares under other people’s names will be confiscated, the court said.

Bùi Thị Kim Loan, accountant for Phú Mỹ Co Ltd, was sentenced to 28 years in prison.

Ngô Thị Ngân was sentenced to 10 years for "intentionally violating State regulations”, and must pay compensation of VNĐ208 billion ($9.1 million).

Former chairman of the bank’s board of management Hoàng Văn Toàn was sentenced to seven years, and former general director Trần Sơn Nam to six years for “intentionally violating State regulations”.

A decision on the disposition of 114 real estate assets, which had been transfered to Phạm Công Danh, will be considered in the next phase of the trial.

Phương Trang company and other enterprises who co-operated with Phương Trang company must pay back VNĐ6.4 trillion ($280 million) to the bank.

More than 100 individuals and representatives of organisations appeared in court along with 50 lawyers.

$280 million loss

According to the results of the investigation, in June 2010 Hứa Thị Phấn and Phú Mỹ Investment and Development JSC and 14 other people bought over 254 million shares of Trust Bank for over VNĐ2.5 trillion ($110 million).

Phấn abused her holding of nearly 85 per cent of the bank’s charter capital to take over the management of all Trust Bank activities.

She took over the entire board of management, executive board and staff, and also took over all investment and credit activities. She abused trust to appropriate and misuse more than VNĐ12 trillion (nearly $530 million), the court said.

Phấn increased the value of her house at 5 Phạm Ngọc Thạch Street in District 3 in HCM City to sell her house to Trust Bank, causing financial damages of over VNĐ1.1 trillion ($48.5 million).

Bùi Thị Kim Loan, accountant for Phú Mỹ Co Ltd, helped Phấn embezzle a total amount of nearly VNĐ5.3 trillion ($231.6 million). Through 29 loans from Phú Mỹ, Phấn embezzled over VNĐ3.6 trillion ($158 million), according to the charges.

She also asked Trust Bank to illegally invest in four other real estate projects, embezzling over VNĐ1 trillion ($44 million), and raised the value of another 25 properties sold to Trust Bank, embezzling over VNĐ1 trillion ($44 million), according to the court.

The investigation police concluded that violations committed by Phấn and others caused serious financial damage to Trust Bank, totaling VNĐ6.362 trillion ($280 million), excluding VNĐ5.64 trillion in damages from three other violations, which will be investigated in the second phase of the case. 

Previously, at a trial about the loss of more than VNĐ9 trillion ($395 million) at Việt Nam Construction Bank (VNCB), HCM City People’s Court decided to launch criminal proceedings against Phấn for “violating lending regulations of credit institutions” and “deliberately violating State regulations on economic management, causing severe consequences”.

In 2012, Đại Tín Bank was restructured and rebranded as VNCB, and Phạm Công Danh became chairman of the bank’s management board.

Danh was later accused of devising scams to steal from the bank, including setting up fraudulent companies and fake documents to take out huge loans, which caused losses of over VNĐ9 trillion. — VNS

 

 

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