Huge assets seized in Truong My Lan case phase 2

In the conclusion of the investigation into the case of Ms. Truong My Lan (68 years old, Chairwoman of Van Thinh Phat Group) and her accomplices in phase 2, the Ministry of Public Security determined that the defendants had illegally transported more than 4.5 billion USD (about 106,730 billion VND) across the border in 10 years; laundered more than 445,000 billion VND and fraudulently appropriated more than 30,869 billion VND from 35,824 victims through the form of issuing fake bonds without collateral.

Ms. Lan owns over 91.5% of the shares of Saigon Commercial Joint Stock Bank - SCB. In 2018, to have money to handle financial difficulties for SCB when the bank was in a state of prolonged bad debt, Ms. Lan and senior staff of SCB and Van Thinh Phat Group agreed on a plan through Tan Viet Securities Company and SCB to offer to people with interest rates higher than the savings interest rates at this bank.

The defendants used 4 companies under Van Thinh Phat Group to issue 25 fake bonds without collateral with a volume of 309 million bonds to defraud investors and collect more than 30,869 billion VND, then misappropriated and used them for improper purposes.

During the investigation, the Ministry of Public Security reviewed, recovered, blocked, and prevented transactions of assets and accounts originating from the criminal acts of Ms. Lan, those under her name, and the defendants.

Specifically, the investigation agency seized VND224 billion from Ms. Lan; froze 79 accounts of the defendants worth more than VND92 billion and USD1.6 million; prevented transactions of 205 payment accounts, savings books, TVSI securities accounts of the defendants, related people, and related legal entities with a total amount of VND824 billion and nearly USD262,000.

Seize and prevent transactions of shares and capital contributions related to Ms. Lan, other defendants and individuals whose names Ms. Lan asked to stand in her name with a total converted value of about 12,313 billion VND at many corporations and companies; seize 9 real estates of Ms. Lan and the defendants in Hanoi, Ho Chi Minh City and Da Nang.

In addition, on May 22, Van Thinh Phat Group issued a document proposing an initial solution to remedy the consequences of the bond packages of related companies with a total value of more than VND 1,015 billion. In particular, Van Thinh Phat Group and 13 related companies committed to voluntarily pay more than VND 519 billion to remedy the consequences, transferred directly to the temporary account of the police investigation agency; using the entire amount of money that is being blocked, more than VND 291 billion, to remedy the consequences.

For Bong Sen Joint Stock Company and Thien Phuc International Hotel LLC, which are in debt with bonds, Van Thinh Phat is looking for investors and transferring secured assets to generate revenue to repay the bond debt obligation. At the same time, Van Thinh Phat is using nearly 70 billion VND from Bong Sen Joint Stock Company and nearly 134 billion VND from Thien Phuc International Hotel LLC to compensate bondholders of these two companies.

By May 27, Van Thinh Phat Group had completed transferring VND221 billion into the temporary account of the investigation agency. Regarding VND291 billion in the accounts of the legal entities that are being blocked, the Ministry of Public Security will continue to maintain and count them, and transfer them to the court for settlement.

Recovering assets of deceased and fugitive defendants

According to the recommendation of the People's Court of Ho Chi Minh City, after the first phase of the trial of Truong My Lan's case, the Ministry of Public Security investigated and clarified a number of related assets.

In particular, the investigation agency traced the cash flow and determined the obligation to return assets to the three defendants who died after being prosecuted, including: Nguyen Phuong Hong (Member of the Board of Directors, former Deputy General Director of SCB); Nguyen Tien Thanh (Member of the Board of Directors of SCB, former Chairman of the Board of Directors and General Director of Tan Viet Securities Company - TVSI) and Nguyen Ngoc Duong (General Director of Saigon Peninsula Company).

Regarding Ms. Nguyen Phuong Hong, the investigation agency has seized 2.5 million shares at TVSI Securities Company, seized land and house documents covering an area of ​​over 6,227 square meters in District 4; and prevented transactions of a balance of over VND85 million in an account opened at SCB. Ms. Hong's family has agreed with the investigation agency to maintain the seizure of these assets.

The Ministry of Public Security blocked the transaction of 8.7 million shares of TVSI Securities Company of Nguyen Tien Thanh, and blocked the transaction of the balance of 386 million VND in 2 accounts at SCB.

The authorities also blocked the balance of more than VND9.1 billion in three accounts at SCB of Nguyen Ngoc Duong; blocked the balance of more than VND50.4 billion in Mr. Duong's son's accounts at SCB and another bank. In addition, the police also seized 216 pieces of gold-colored metal; 6 savings books worth VND132 billion; documents related to 3 real estate properties in Ho Chi Minh City, Long An and VND100 million in cash of Mr. Duong. During the investigation, Mr. Duong's family agreed to let the agency seize and block the transfer of these assets to the People's Court of Ho Chi Minh City.

At the same time, the investigation agency also seized and frozen the assets of 5 fugitives related to the violations in phase one. The list of these assets is listed in the appendix that has not been published.

Also according to the recommendation of the Ho Chi Minh City People's Court, the Ministry of Public Security continued to seize 76 land use rights in Nhon Trach district, Dong Nai, which are believed to be assets originating from Ms. Lan's name. Currently, the Ministry of Public Security's Investigation Police Agency is investigating and handling acts showing signs of abuse of trust to appropriate assets and fraud to appropriate assets of those Ms. Lan asked to use their names for them; continuing to seize 16 land use rights in Phuoc Kien commune, Nha Be district, Ho Chi Minh City (1 hectare belonging to the Bac Phuoc Kien residential area project). Regarding these assets, 3 individuals named as owners declared that they contributed money with Mr. Duong to buy them, while Ms. Lan declared that she had spent 500 billion VND to buy these land use rights.

The investigation agency is continuing to review, track down and seize assets related to Ms. Lan's violations.

In the second phase of the case, Ms. Lan and three accomplices, Nguyen Phuong Anh, Deputy General Director of Saigon Peninsula Group Joint Stock Company; Trinh Quang Cong, General Director of Acumen Management Group Joint Stock Company; Truong Khanh Hoang, former Acting General Director of SCB Bank, were accused of money laundering and illegal transportation of currency across borders.

Nearly 30 other defendants, including Truong Hue Van (Mrs. Lan's niece) and Chu Lap Co (Mrs. Lan's husband), were accused of being accomplices in one of the crimes of fraud, money laundering, or illegal transportation of currency across the border.

In the initial stage, Ms. Truong My Lan was accused of directing her accomplices to disburse a total of more than 2,500 loans to a group of companies in the Van Thinh Phat Ecosystem during the 10 years of acquiring SCB. By October 2022, Ms. Lan and Van Thinh Phat's group still had nearly 1,300 loans with an outstanding principal and interest of VND 677,000 billion. However, by the time of the first instance trial, some loans had been paid off, and defendant Lan had also paid an additional amount to remedy the consequences, so she had to pay compensation of more than VND 673,800 billion.

On April 11, the Ho Chi Minh City People's Court sentenced Ms. Lan to 20 years in prison for bribery, 20 years in prison for violating lending regulations in the operations of credit institutions, and the death penalty for embezzlement. Combined, Ms. Lan must serve the death penalty.