The construction of a building near Ben Thanh Market owned by Viva Land, a subsidiary of Van Thinh Phat Group, stalled at the end of 2022 following the arrest of Truong My Lan. - Photo: VNS
HCM CITY: Convicted fraudster Truong My Lan, who was sentenced to death earlier this year for her involvement in Vietnam’s largest financial scandal, is seeking to compensate over 35,000 bondholders she swindled money from.
An attorney representing the chairwoman of Van Thinh Phat Group has stated that Lan requested that funds recovered by law enforcement be prioritised for the restitution of bond investors.
According to the attorney, she also plans to utilise over VNĐ21 trillion in recovered funds and assets to compensate them.
As of July 8, Lan and her company had already contributed over VNĐ386 billion towards addressing the consequences of the scandal.
Additional assets valued at over VNĐ12.3 trillion linked to her have been seized and will also be allocated for reimbursement.
The HCM City People’s Court has previously mandated that all recovered assets be designated for rectifying the consequences of the case, with a priority placed on the bond victims.
The court has also instructed authorities to clarify the assets of five defendants who are currently evading capture.
Authorities have seized millions of dollars in cash and frozen significant assets associated with Lan.
An inventory has been conducted of over 1,240 property developments owned by her, mostly located in prime areas of HCM City and beyond.
This inventory includes eight properties in Quang Ninh, 857 million shares in Saigon Commercial Bank (SCB), over 137 million shares in five other companies, a yacht, two ships, and 19 automobiles, among other assets.
Numerous accounts linked to Lan and other defendants have also been frozen that hold nearly VNĐ1.9 trillion and over $8.4 million.
Transactions totalling almost VNĐ790 billion related to a company within the group have also been halted.
Authorities have stated that these funds will be prioritised for repayment to bond victims.
Investigators have revealed that Lan’s network of over 1,000 fraudulent companies under the Vạn Thịnh Phát Group engaged in fraudulent bond issuances exceeding VNĐ35 trillion, affecting more than 35,000 victims through SCB, where she held a significant stake.
Since her arrest in October 2022, victims have not received any principal or interest payments through their SCB accounts.
Currently, Lan is on trial alongside 33 co-defendants for the illegal transfer abroad of $4.5 billion and the laundering of over VNĐ446 trillion ($18.1 billion).
In a previous trial in April, she was sentenced to death for embezzling VNĐ677 trillion ($27 billion) from SCB, although she is appealing this decision.
Depending on the outcome of her appeal, Lan could face decades of imprisonment due to prior sentences of 20 years each for other charges.
The scandal is the most serious fraud in Vietnam’s history, significantly impacting the real estate sector and raising concerns regarding cross-ownership risks among banks.
The ongoing government anti-corruption campaign, initiated by the late Party Secretary Nguyen Phu Trong and now led by his successor, To Lam, has convicted high-profile figures such as Lan.
The trial is expected to last until October 19. - Vietnam News/ANN
