A high-profile trial in Vietnam sees real estate mogul Trương Mỹ Lan admitting to transferring billions through illicit means.
A Vietnamese court heard startling admissions from real estate tycoon Trương Mỹ Lan, chairwoman of the prominent Vạn Thịnh Phát Group. Lan confessed to orchestrating the illegal transfer of $4.5 billion across Vietnam’s borders over a decade. The staggering sum, equivalent to approximately 106.73 trillion Vietnamese dong, was moved through a complex web of shell contracts and the complicity of banking officials.
The Scheme Unfolds: Shell Contracts and Banking Loopholes
The prosecution painted a picture of deliberate financial maneuvering by Lan and her associates. Beginning in 2012, Lan allegedly directed Trịnh Quang Công, former CEO of ACUMEN Group, and Nguyễn Phương Anh, deputy CEO of SPG, to create a series of fictitious contracts. These contracts, fabricated with the assistance of a lawyer currently on the run, were designed to mask the true nature of the money transfers.
Lan claimed the funds were personal loans from international friends, with repayments sourced from her private assets. Utilizing her influence over Saigon Commercial Bank (SCB), where she holds significant shares, Lan funneled the money through the institution. She argued this was mutually beneficial, providing SCB with foreign currency and generating revenue through transaction fees.
SCB: Facilitator or Victim?
The trial also implicated Trương Khánh Hoàng, acting general director of SCB, who allegedly aided Lan in moving over 68 trillion Vietnamese dong. While Hoàng admitted to his role, he insisted he was unaware of the illegal nature of the transactions, attributing his actions to a lack of expertise in international finance. He asserted his motivation was to bolster SCB’s liquidity and generate income.
Intriguingly, Hoàng revealed that a portion of the funds originated from embezzlement schemes, a matter already adjudicated in a previous trial. This revelation further entangled SCB in the web of financial misconduct, raising questions about the bank’s internal controls and oversight.
Lan Accepts Responsibility, Seeks Leniency for Accomplices
Despite the intricate network of players and transactions, Lan took sole responsibility for the illegal transfers. She maintained that her actions were not connected to Vạn Thịnh Phát, urging the court to consider this when determining her sentence.
In a bid for leniency for her co-conspirators, Lan emphasized their roles as salaried employees who did not personally profit from the scheme. She highlighted their limited understanding of the law and requested the court to show clemency.
A High-Profile Trial with Far-Reaching Implications
The trial has sent shockwaves through Vietnam’s business community, raising concerns about transparency and accountability within the financial sector. The case underscores the challenges faced by regulators in combating illicit financial flows, particularly those involving powerful individuals and corporations.
As the trial progresses, the Vietnamese public eagerly awaits the court’s verdict, hoping for a just outcome that upholds the rule of law and deters future financial crimes.
