Meet the Woman Behind the World's Biggest Banking Scam: Truong My Lan’s $12.5 Billion Embezzlement
The amount is equivalent to about 3% of Vietnam's GDP in 2022, leaving the nation's financial system shaken to its very core.
Meet Truong My Lan, one of the masterminds behind one of the world's biggest banking scams that embezzled a total of $12.5 billion using fraudulent schemes. This was a huge scam that mainly involved the Saigon Commercial Bank (SCB), a bank said to have perpetrated the biggest financial fraud ever recorded in the banking sector at a whopping loss of $27 billion. The amount is equivalent to about 3% of Vietnam's GDP in 2022, leaving the nation's financial system shaken to its very core.
Born in 1956 in Ho Chi Minh City, Truong My Lan first began her business by selling cosmetics with her mother and later entered the real estate sector. Lan fast gained recognition after co-founding Van Thinh Phat (VTP) in 1992. VTP became one of Vietnam's most prosperous real estate companies under Lan's helm. It owned such notable properties as Times Square Saigon, Windsor Plaza Hotel, and Sherwood Residence Hotel. All these brought her huge fortunes and fame.
However, her empire was constructed on illegal practices. Lan's fraudulent activities started in 2011, when SCB merged with two other lenders. In 2012, she took the control of SCB, using it as a cash cow. She masterminded a complex scheme, involving fake loan applications and thousands of shell companies in Vietnam and abroad, siphoning off billions of dollars. Lan also bribed the high ranking officials to cover up her activities, up to a central bank officer who now faces a life sentence for his role.
The scam devastated thousands of Vietnamese citizens who lost their savings, and the financial fallout has left the country in a state of crisis. The case involved over 85 defendants, including Lan's own family members. More than six tons of evidence were presented in court, highlighting the scale of the fraud.
In April 2024, Truong My Lan was sentenced to death by lethal injection for her role in the $12.5 billion embezzlement. Under Vietnamese law, she may reduce her sentence to life imprisonment if she repays at least 75% of the stolen funds. Currently, she is racing to liquidate her vast real estate holdings to raise the $9 billion required to repay the stolen money. However, her lawyers argue that the death penalty is interfering with her ability to effectively sell her assets and raise the necessary funds.
Lan's case illustrates the risks of unchecked power within financial systems and stands as a cautionary tale of how fraud can bring even the most powerful empires crashing down. Her downfall has shocked Vietnam and the global financial community, showing the devastating effects of banking fraud on national economies.