How Truong My Lan’s assets to be used to compensate lender SCB in $27B scam

Lan, 68, sentenced to death for embezzling money from SCB, has to pay it compensation of VND673.8 trillion (US$26.96 billion). She ordered SCB executives to disburse 2,500 loans to Van Thinh Phat and its associate companies over 10 years.

As of October 2022 (when Lan was arrested) the group had 1,284 loans worth VND677 trillion ($27 billion) outstanding, and she, as the mastermind of the scheme, is responsible for paying the amount in full, the People's Court of Ho Chi Minh City ruled Thursday.

Since she and some others had paid some money during the investigation and trial, she is now required to pay VND673.8 trillion, the judges said.

There are 1,122 assets that were used as collateral for the loans, and the bank now has the right to liquidate and set them off against the debts, they said.

During the investigation, the police confiscated many assets that Lan directly or indirectly owned, and they will all be used to recompense SCB.

They include 1,237 properties, most of them in Ho Chi Minh City and including the 118-hectare Saigon Peninsula land in District 7 and the Saigon One Tower in District 1.

The Saigon Peninsula land in District 7, Ho Chi Minh City, one of the assets owned by Van Thinh Phat chairwoman Truong My Lan, has been confiscated. Photo by VnExpress/Thanh Tung

People who have received goods, shares or cash from Lan have to turn them in to the court.

Do Thi Nhan, the State Bank of Vietnam banking inspector who has been sentenced to life in prison has turned in $4.8 million of the $5.2 million she took as bribes. The judges ordered her to pay the remaining $400,000 and another VND100 million ($4,000) as fine.

All property developer Van Thinh Phat assets will also be confiscated.

The police confiscated VND590 billion and nearly $15 million from Lan and others, while also freezing transactions in the defendants’ 42 bank accounts, which contain VND1.9 trillion and $8.4 million.

After a month-long trial the court has found Lan guilty of embezzlement, bribery and violating banking regulations.

Her husband was sentenced to nine years in jail and Truong Hue Van, her niece and CEO of Van Thinh Phat, got 17 years.

Three top SCB executives were also sentenced to life imprisonment.