Vietnamese property tycoon Truong My Lan has lost her appeal against the death sentence she received for orchestrating the world’s largest bank fraud.
The 68-year-old now faces a race against time, as Vietnamese law allows for her sentence to be reduced to life imprisonment if she repays 75% of the embezzled funds.
In April, the court found Truong My Lan had covertly controlled Saigon Commercial Bank, Vietnam’s fifth-largest lender, for over a decade.
She allegedly siphoned off loans and cash through a network of shell companies, totaling $44 billion (£34.5 billion). Prosecutors claim $27 billion was misappropriated, while $12 billion was classified as embezzled—the offense that led to her death sentence.
The verdict was both rare and shocking, as she became one of the few women in Vietnam to receive a death penalty for a white-collar crime.
On Tuesday, the court upheld the sentence, stating there was no justification for leniency. However, she may avoid execution if she repays $9 billion—three-quarters of the embezzled amount. She still has the option to seek amnesty from the president.
During her trial, Truong My Lan often displayed defiance. However, in her recent appeal, she appeared remorseful, expressing shame for the burden she placed on the state and pledging to repay what she owed.
Born into a Sino-Vietnamese family in Ho Chi Minh City, Truong My Lan began as a cosmetics vendor with her mother. She entered real estate after economic reforms in 1986 and built a substantial portfolio of hotels and restaurants by the 1990s.
At the time of her conviction in April, she chaired the Van Thinh Phat Group, a prominent real estate firm. Her sentencing marked a significant moment in the “Blazing Furnaces” anti-corruption campaign led by former Communist Party Secretary-General Nguyen Phu Trong.
All 85 remaining defendants were convicted, with four receiving life sentences and the rest, including Truong My Lan’s husband and niece, receiving prison terms ranging from 20 years to three years suspended.
The State Bank of Vietnam is believed to have spent billions of dollars recapitalizing Saigon Commercial Bank to prevent a broader banking crisis. Prosecutors described her crimes as “huge and without precedent,” asserting that they did not warrant any leniency.
Truong My Lan’s lawyers have stated that she is doing everything possible to secure the $9 billion required. However, liquidating her assets has proven challenging.
Some of her assets, including luxury properties in Ho Chi Minh City, could be sold relatively quickly, but others are tied up in shares or stakes in businesses and property projects.
The state has identified over a thousand assets linked to the fraud, all of which have been frozen by authorities. It is understood that the tycoon has also approached friends to secure loans to help meet the target.
Her legal team has requested leniency, arguing that while she faces a death sentence, it is difficult for her to negotiate the best prices for selling her assets, making it harder to raise the required $9 billion.
They contend that if she were serving a life sentence instead, she would be in a better position to secure more favorable terms.
“The total value of her holdings actually exceeds the required compensation amount,” lawyer Nguyen Huy Thiep told the BBC before her appeal was rejected.
“However, these require time and effort to sell, as many of the assets are real estate and take time to liquidate. Truong My Lan hopes the court can create the most favourable conditions for her to continue making compensation.”
Few expected the judges to be swayed by these arguments. She is now effectively racing against time to secure the funds needed to avoid execution.
Vietnam treats the death penalty as a state secret, and the government does not disclose the number of people on death row. However, human rights groups estimate there are over 1,000 individuals awaiting execution, making Vietnam one of the world’s largest executioners.
Execution sentences often face long delays, sometimes taking many years to be carried out, though prisoners receive very little notice. If Truong My Lan can raise the $9 billion before her sentence is executed, she is likely to have her life spared.