HCM City (VNA) - Prosecutors on April 3 called for a reduced life sentence for property tycoon Truong My Lan, citing her repayment of one quarter of the 30 trillion VND (1.16 billion USD) she defrauded from thousands of bond investors.

At the ongoing appeal trial for the second phase of the high-profile case involving Van Thinh Phat Group and Saigon Commercial Joint Stock Bank (SCB), which commenced on March 25, Lan is appealing the entire verdict, challenging her convictions for "fraudulent appropriation of assets" (embezzling nearly 30.08 trillion VND – from 35,824 secondary investors), "money laundering" (involving 445.75 trillion VND), and "illegal cross-border money transfers" (4.5 billion USD). Another 27 defendants are also seeking reduced sentences, suspended sentences, or reconsideration of certain charges.

Previously, on October 17, 2024, the first-instance trial of the second phase sentenced Lan to life imprisonment for "fraudulent appropriation of assets", 12 years for "money laundering", and eight years for "illegal cross-border money transfers", with a total sentence of life imprisonment. Thirty-three other defendants received sentences ranging from 2 to 23 years.

Prosecutors at the High-level People's Court in Ho Chi Minh City told the court on April 3 that authorities have so far collected 8 trillion VND worth of assets from Lan. Additional funds amounting to approximately 15 trillion VND will be collected from other organisations and individuals in the coming time.

Affirming that this is a new development at the appellate level, they recommended that the court reduce Lan's sentence on the charge of "Fraudulent appropriation of property."

According to the indictment, Lan founded Van Thinh Phat in 1992, holding a 60% stake and serving as Chairwoman of the Board of Directors since its inception. Between 2018 and 2020, key officials at the SCB, Van Thinh Phat, and Tan Viet Securities issued 25 fictitious bond codes without collateral, raising capital fraudulently. A total of 308.69 million bonds was sold illegally, defrauding 35,824 investors of over 30.08 trillion VND as of October 7, 2022.

Furthermore, authorities determined that from 2012 to 2022, 23 companies under Van Thinh Phat were used to transfer money abroad and repatriate funds, with 4.5 billion USD illegally moved across borders. Lan and her associates also laundered 445.75 trillion VND derived from embezzled SCB funds. The court assessed that Lan must face the strictest punishment for her role, holding her accountable for the 30.87 trillion VND defrauded from investors.

📖 In the first phase of the case, Lan was sentenced to death for "embezzlement", 20 years for "taking bribes", and 16 years for "violating lending regulations within financial institutions”./.