Mogul seeks to avoid execution in Vietnam’s biggest fraud case

VIETNAMESE property tycoon Truong My Lan is set to hear whether she’ll be spared execution as a court prepares to rule on her appeal against the death sentence for masterminding the country’s largest ever fraud scandal.

During the monthlong hearing at the High People’s Court in Ho Chi Minh City, prosecutors told the former chairwoman of Van Thinh Phat Group she must repay an estimated $11 billion if she wants the death penalty commuted to a life sentence.

Lan, 68, can avoid execution if she returns at least three-quarters of the total embezzled assets and bribes paid to officials, and cooperates with authorities, according to Vietnamese law. If Lan fails to get the death penalty commuted, she can still petition President Luong Cuong, who must weigh in on the request before the sentence is carried out.

Conversely, the chief justice of the Supreme People’s Court or the prosecutor general of the Supreme People’s Procuracy can file protests regarding Lan’s sentence to the High People’s Court in Ho Chi Minh City if they suspect violations have occurred regarding the case’s settlement, or discover new information that could change the verdict. It can take at least three months for decisions to be made about whether to file protests, according to Nguyen Trong Nghia, a partner at Bizconsult law firm who is not involved with the case.

“Vietnamese laws don’t have specific provisions on the time limit for carrying out the death sentence once the appellate verdict takes effect,” Nghia said.

By law, Lan’s death sentence would be commuted to life in prison if she turns 75 before the execution is carried out.

Lan’s lawyers say a number of potential investments and loans are being negotiated to clear her debts and believe she can get the required amount to avoid the death penalty. But it’s unclear how much of this is tied to properties under scrutiny or have had their status frozen pending further investigation.

The real estate mogul’s downfall has captured global attention due to the severity of the sentence and complexity of the case. She has become emblematic of the ruling Communist Party’s crack down on corruption, showcasing the kind of high-level networks it wants to go after and make an example of.

Lan was convicted in April of embezzling $12.3 billion from Saigon Commercial Bank. She was also found guilty of bribing government officials and violating bank lending rules.

Lan received an additional life sentence after a second trial in October on charges including money laundering and a $1.2 billion bond fraud. Thousands of bondholders saw their investments all but wiped out as issuances tied to her property empire became worthless. Some turned up at court to demand justice and their money be repaid.

The government’s anti-corruption crackdown, known as the “blazing furnace” campaign, has escalated in recent years. Party chief To Lam has vowed to “resolutely” continue the aggressive push that has touched all aspects of society and led to the detention of scores of senior officials and business executives.

On Friday, the former head of an oil company was jailed for 30 years after being convicted of overseeing a fraud scheme that caused state losses just short of $60 million, and bribing officials to cover it up. One of those convicted of taking bribes was given 28 years in prison. –BLOOMBERG