Ho Chi Minh City People’s Court opens trial on major bank fraud case

Truong My Lan, Chairwoman of the Van Thinh Phat Group, stood accused of embezzlement, giving bribes, and violating regulations on banking and related activities.  

Other 85 defendants, including former leaders and officials of SCB, the State Bank of Vietnam, the Government Inspectorate, the State Audit Office, were charged with embezzling property, accepting bribes, abusing positions and power while performing duties, showing the lack of responsibility causing serious consequences, violating regulations on the operations of credit institutions and banking activities, and abusing trust for property appropriation.

According to the indictment of the Supreme People's Procuracy, Lan built a network of about 1,000 subsidiaries and affiliated companies under the Van Thinh Phat umbrella, entrusting their management to relatives. Despite not holding any official position at SCB, Lan was its major shareholder, controlling between 85% and 91.5% of the shares. She and her accomplices created fake loan records to withdraw money from SCB for personal use.

From October 9, 2018 to October 7, 2022, Lan directed the creation of 916 fake loan records, appropriating more than VND304 trillion (US$12.6 million) from SCB. The bank now remains unable to recover the sum and has accrued over VND129,372 trillion in interest on the outstanding amount.

Lan was also accused of giving bribes to the State Bank of Vietnam inspection team to cover up her wrongdoings at SCB and facilitate the bank’s restructuring,

She also appeared as a victim in the case against Nguyen Cao Tri, Chairman of the Board of Directors of Van Lang Company and Capella Company. Tri was charged with abusing his trust to attempt the misappropriation of VND1 trillion from Lan.

Of the 86 defendants brought to trial, 70 are in custody while 11 are on bail. Five others, including former leaders of SCB and its branches, remain wanted.

The trial is scheduled to last till April 29.