Prosecutors propose 10-year prison sentence for beverage tycoon Tran Qui Thanh in $41M fraud case

Thanh, 71, Tran Uyen Phuong, 43, who is also deputy CEO of Tan Hiep Phat, and Tran Ngoc Bich, 40, are on trial for allegedly offering loans against collateral and then coercing borrowers into selling the assets at cheap prices to appropriate assets worth VND1.048 trillion (US$41.2 million).

The prosecutors said Wednesday afternoon that Thanh was the mastermind behind the fraud while his daughters were merely following his instructions.

"In this case, Thanh was responsible for the transactions and directly negotiating with the borrowers," prosecutors said.

At the time the wrongdoing was committed, the trio was educated and knowledgeable but chose to engage in the lending scheme to appropriate assets from borrowers over a long period, prosecutors asserted.

Nevertheless, they acknowledged Thanh's old age and the trio's contributions to the economy and society as mitigating factors.

Taking all factors into account, the prosecutors proposed a 9-10 year prison sentence for Thanh, while Phuong was recommended 5-6 years and Bich 4-5 years for charges of "abuse of trust to appropriate assets."

Tran Ngoc Bich, 40, daughter of beverage tycoon Tran Qui Thanh at the Ho Chi Minh City People’s Court on April 24, 2024. Photo by VnExpress/Thanh Tung

According to the prosecution, Thanh and his daughters gave loans against collateral to many people at an interest rate of 3% per month between January 2019 and November 2020.

But instead of loan contracts, they allegedly coerced them into signing sale contracts at prices significantly lower than the actual value of the collateral.

Even when the borrowers paid back the money with interest, Thanh would refuse to give back the assets on various pretexts, including claiming they had forfeited their repurchase rights due to contract breaches.

The trio allegedly swindled two property projects and 35 land lots worth a total of VND1.048 trillion from four individuals in this manner.

They had denied the accusations throughout the investigation, claiming they had been sales and not loan transactions.

However, during the ongoing trial, Thanh and Phuong changed their testimonies and admitted to the charges laid by the prosecution.

The trial is scheduled to run until April 25.