Around 36,000 people who purchased bonds from SCB were identified as victims of a fraud scheme orchestrated by Lan, who owned a 90 percent stake in the bank. Lan was ordered to compensate all the victims, although the details on how and when this would happen were not provided by state media. One victim, Huong, lost her entire savings of US$20,000 in the scheme and felt like she was “losing her mind” upon realizing the extent of her losses. This led to insomnia, declining health, and the inability to afford extra classes for her children, causing them to fall behind their peers.
State media reported that Lan and her associates embezzled around US$18 billion by transferring assets out of SCB between early 2018 and October 2022. Lan, who also chaired a major real estate developer, instructed her accomplices to withdraw cash and hide the origins of the money, using it to settle debts between companies or transfer it abroad through fake contracts. Dozens of victims protested in central Hanoi during Lan’s trial, demanding assistance from authorities in recovering their lost funds. Lan apologized to the victims in court, claiming she was not a bad person, but was nevertheless sentenced to death for embezzling US$12.5 billion, a verdict she is currently appealing.
The total damages caused by the fraud scheme were estimated at US$27 billion, roughly six percent of Vietnam’s Gross Domestic Product in 2023. Huong’s story is just one of the many tragic accounts of individuals who fell victim to Lan’s scheme, facing financial ruin and emotional distress as a result. The impact of the fraud extended beyond just the financial losses, with victims experiencing severe mental and physical health consequences, as well as the inability to provide for their families. The protests in central Hanoi and the ongoing legal proceedings highlight the extent of the devastation caused by Lan’s criminal actions and the urgent need for justice and restitution for the victims.
Despite Lan’s public apology and denial of being a malicious individual, the scale of the fraud and its detrimental effects on thousands of innocent individuals cannot be overlooked. The death penalty handed down to Lan reflects the severity of her crimes and the significant impact on the victims and the country’s economy as a whole. The pursuit of justice for the victims, many of whom are struggling to cope with the aftermath of losing their life savings, is a critical aspect of the ongoing legal proceedings and appeals. The tragic consequences of the fraud scheme serve as a stark reminder of the importance of ensuring accountability and restitution in cases of financial crimes that devastate the lives of many innocent individuals.
