Truong My Lan seeks to give niece, husband $66M to fully compensate SCB

It includes VND1.35 trillion for Truong Hue Van, her niece and CEO of Van Thinh Phat, she said in her request to the People's Court of Ho Chi Minh City Thursday.

Van’s lawyer told the court that the request is a major development since, with this money, she would be able to compensate in full for the damage she is charged with causing SCB.

He pleaded for all possible reduction in her punishment based on this.

Van is accused of establishing 56 companies, including 52 shell companies, to get 155 loans from SCB and helping Lan to appropriate VND1.09 trillion from the bank and cause it losses of VND25 billion in interest.

The prosecutors have said that though Van has been sincere in her testimony she should still get a sentence of 19-20 years due to the grave consequences of her crimes.

But her lawyer argued that the sentence was too harsh since she only followed Lan’s directions due to personal trust. She was not fully aware of the implications of her actions, he claimed.

Van also asked the court to reduce her sentence.

Times Square Vietnam chairman Eric Chu is seen at the People's Court of Ho Chi Minh City. Photo by VnExpress/Thanh Tung

Lan recently received VND1.65 trillion from two business partners who had owed her money.

The remaining VND300 billion is for her husband and Hong Kong property tycoon Eric Chu, who allegedly helped her appropriate money from SCB and cause it losses of VND9.12 trillion.

He had twice allowed Lan to use assets belonging to his company Times Square Vietnam as collateral for borrowing from SCB and prosecutors have recommended 10-11 years imprisonment for him.

His lawyers argued that the sentence was too severe since Chu had only signed the documents to help his wife rescue SCB from its precarious financial situation.

"It is very normal for a husband to lend assets to his wife. Chu trusted his wife completely and signed those documents."

His lawyers also said that the valuation of the Times Square Building by appraisal company Hoang Quan did not take into account the value of the land, and the low valuation caused a disadvantage to Chu.

Before Hoang Quan, another company had valued the building at VND45 trillion, enough to cover the loans of VND39 trillion based on it as collateral.

The lawyers therefore sought a substantial reduction in Chu’s sentence.

At the ongoing trial prosecutors have recommended the death sentence for Lan for committing severe crimes over a long period and causing irrevocable consequences.

From 2012 to 2022 Lan and her accomplices obtained 2,500 loans worth more than VND1 quadrillion ($44 billion), accounting for 93% of the bank’s total lending during the period.

She is accused of causing losses of VND498 trillion.