Bank embezzlement committed out of family loyalty: Truong My Lan's niece

Van, 36, admitted that the accusations against her were true at her trial at the Ho Chi Minh City People’s Court on Thursday.

The prosecution has charged her with ordering subordinates to establish 52 shell companies and four regular companies to obtain 155 loans at SCB, which allowed Lan, her aunt, to pocket VND1.1 trillion of the bank’s money.

Van said that she lived with Lan since she was little and called her "Mother."

"I knew her vision and plans. I trusted her completely."

Whenever Lan needed money, Van would order her subordinates to establish new companies to borrow from SCB, but eventually the money would go to her for her personal expenses.

The prosecutors have recommended a reduced sentence for Van since she had confessed her crimes and voluntarily asked to recompense the losses caused by her wrongdoing.

Another key accomplice of Lan, Duong Tan Truoc, CEO of Tuong Viet Company, also admitted to his crime at the trial.

Duong Tan Truoc, CEO of Tuong Viet Company, seen at the People's Court of Ho Chi Minh City on March 7, 2024. Photo by VnExpress/Quynh Tran

Lan sold him a property project in Ho Chi Minh City’s District 2 (now Thu Duc City) for VND2.5 trillion, but told him that he did not have to pay and only needed to register for a VND3.5 trillion loan at SCB.

Truoc then used VND2.5 trillion of the loan to pay for the project while the remaining VND1 trillion was pocketed by Lan.

Truoc instructed his subordinates to establish two companies to get the loans.

When SCB disbursed the loans, the money was transferred to many companies before going to Lan and her accomplices at Van Thinh Phat.

Truoc helped Lan borrow VND4.75 trillion in all from SCB and caused it a loss of VND605 billion.

He told the court he wanted to partner with Lan because of her many large property projects. Many times he even obtained loans from SCB through his companies and let Lan borrow the money.

He helped Lan get permits for two key projects in HCMC and for that received a bonus of VND1.5 trillion from her.

The bonus was paid from the loans obtained from SCB and through his companies.

Truoc returned VND865 billion to authorities to recompense for the losses he had caused.

He also promised to pay back VND2.2 trillion he had received from Lan using all of his assets.

At the two-month trial Lan faces charges of bribery, violating bank regulations and embezzlement.

She owned a 91.5% stake in the bank, but in the names of other people and entities.

Between 2012 and 2022 SCB gave Lan over 2,500 loans worth over VND1 quadrillion ($44 billion), equivalent to 93% of its entire loan portfolio.

In all, she is accused of causing losses of VND498 trillion to the lender.

As of 2022 Lan’s network had nearly 1,300 loans worth a total of VND677 trillion, all unrecoverable.

Eighty five others are being tried for embezzlement, bribery, abuse of power while performing official duties, lack of responsibility causing serious consequences, and violating bank regulations.