A Vietnamese real estate tycoon has been sentenced to death in a fraud case

Lan, who heads real estate developer Van Thinh Phat Holdings Group, was accused of seizing assets from Saigon Joint Stock Commercial Bank by obtaining illegal loans to Van Thinh Phat and shell companies.

Local media reported that much of Lan's defense was based on her lawyer's claim that she controlled only about 15% of the bank and had no formal position at the bank, suggesting that embezzlement charges were not appropriate.

However, witnesses who owned significant stakes told the court that they had been instructed to act on Lan's behalf. Local media reported that judges found that Lan owned a controlling stake of more than 90% in SCB Bank through agents and was the actual owner of the bank.

The loans were It said It has a total value of $44 billion and represents more than 90% of SCB's lending between 2012 and 2022. An estimated $12.3 billion was allegedly transferred to Phan Thienh Phat while other funds were used privately. The judges found that some of the more than 1,000 loans had been settled by Lan, but the court said she would have to compensate the bank in full.

Lan was first arrested in 2022, with allegations dating back about 10 years. Besides Lan, more than 80 other people, including central bank officials, have been indicted in the case on charges of damaging SCB, state media reported.

Reuters reported on Thursday that a family member had confirmed that Lan would appeal the ruling.

CNBC was unable to independently verify the report.

The case against Lan is part of a broader anti-corruption campaign led by Vietnam's ruling Communist Party, dubbed the “Burning Oven.” High-ranking politicians, including former Vietnamese presidents, were forced to resign in connection with the campaign, and hundreds of officials and businessmen were sentenced.