Vietnam: trial of the president of a real estate giant begins for massive fraud

2024-03-05T17:08:23.377Z

Highlights: Vietnam: trial of the president of a real estate giant begins for massive fraud. She allegedly embezzled $12.5 billion through a fraudulent loan system. The sum is equivalent to 3% of Vietnam's gross domestic product. This exceptional trial, which will last two months, will see ten prosecutors and 200 lawyers parade, who will have to examine six tons of documents. This is the largest fraud ever committed in the country. As a result, the Vietnamese no longer have confidence in their banks, and are turning to gold.

It is this Tuesday March 5 that the trial of Truong My Lan, who heads the Van Thinh Phat real estate group, opens in Ho Chi Minh City in Vietnam. She allegedly embezzled $12.5 billion through…

Vietnam: trial of the president of a real estate giant begins for massive fraud

It is this Tuesday March 5 that the trial of Truong My Lan, who heads the Van Thinh Phat real estate group, opens in Ho Chi Minh City in Vietnam.

She allegedly embezzled $12.5 billion through a fraudulent loan system.

The sum is equivalent to 3% of Vietnam's gross domestic product.

Truong My Lan upon his arrival at the court in Ho Chi Minh City, March 5, 2024. AP - Phan Thanh Vu

By: RFI Follow

Tried, alongside 78 other defendants, the former leader is accused of having defrauded, between 2018 and 2022, more than 40,000 savers.

Truong My Lan allegedly set up a system of false loan applications to withdraw money from the Saigon Commercial Bank, in which his real estate group held more than 90% of the shares.

And this with the complicity of former employees.

Since his arrest, bank customers can no longer withdraw money or receive interest on their deposits.

This exceptional trial, which will last two months, will see ten prosecutors and 200 lawyers parade, who will have to examine six tons of documents.

This is the largest fraud ever committed in the country.

In the absence of effective regulation, the Vietnamese banking system leaves the door open to powerful, often dishonest, private actors.

As a result, the Vietnamese no longer have confidence in their banks, and are turning to gold, the safe haven par excellence, which is reaching new historic highs.

Read alsoVietnam: the fight against corruption led vigorously by Nguyen Phu Trong, the country's strongman

Vietnam: trial of the president of a real estate giant begins for massive fraud

Vietnam: trial of the president of a real estate giant begins for massive fraud

You may like

Trends 24h

Latest