'Our family members bought fraudulent bonds': SCB leaders who abetted Truong My Lan

Truong Khanh Hoang, acting CEO of the bank, told the People's Court of HCMC Saturday that he had worked as a property broker before starting his job at the bank and therefore lacked knowledge of banking and finance.

When he was offered the CEO’s job by Lan, some of the bonds has already been issued, he said.

Lack of money to pay interest to existing bond holders put him under pressure, and he made the "wrong decision" to consent to Lan’s proposal to issue more bonds, he claimed. He said he was "devastated" because his wife and aunt were also victims of the "fraud."

Hoang allegedly helped Loan appropriate VND2 trillion (US$81 million) from the VND30 trillion she raised totally through the issuances.

Bui Anh Dung, SCB chairman, who allegedly helped Lan pocket the same amount as Hoang, also admitted to the charges and took responsibility for his wrongdoing.

Bui Anh Dung, former chairman of Saigon Commercial Bank, seen at the People's Court of Ho Chi Minh City in April 2024. Photo by VnExpress/Hoang Hung

He had trusted Lan and was not aware he was committing a wrong at the time, he claimed. "My wife and many relatives also bought the bonds through SCB."

Another defendant and Lan’s sister-in-law, Ngo Thanh Nha, said she did not have financial knowledge but still signed documents to approve many of the issuances since she "trusted Lan completely."

She was the CEO of An Dong, one of several companies involved in the scheme, and is charged with helping Lan appropriate VND24.97 trillion from the VND30 trillion.

She was shocked to find out how much damage her actions have caused to people, she claimed.

She offered her personal assets to compensate the victims, and has already turned in VND2 billion for the purpose.

Lan is accused of masterminding the bond fraud scheme and swindling 35,800 investors.

She and her accomplices used the money to pay bank debts and she used some to cover personal expenses and transfer overseas.

Lan is being tried for fraudulent appropriation of assets through the issuance of bonds, money laundering and illegal trans-border remittances.

She is scheduled to testify on Monday. Earlier this year she was sentenced to death for embezzling money from the SCB between 2012 and 2022.

She and her accomplices owe VND677 trillion to the bank they had obtained through 1,300 different loans.

The court also found her guilty of bribery and violating banking regulations. She has appealed the death sentence.