Van Thinh Phat chairwoman laundered money through property, transferred overseas

These violations have been uncovered in the second phase of investigation on Lan’s crime, according to major general Nguyen Van Thanh, deputy head of a unit specialized in financial and corruption crimes under the Ministry of Public Security.

Two new cases against Lan are being investigated and over 100 people are suspects, he said at a meeting Wednesday.

The police have found that Lan used the money withdrawn from SCB to buy large property projects. She also transferred the money overseas for investment.

Investigation is ongoing and the conclusions will be announced later, Thanh said.

Investigators have also discovered that Lan and her accomplices have allegedly issued 25 bond lots worth VND30 trillion ($1.23 billion) through property developer Van Thinh Phat.

But the police are having difficulties identifying the victims.

Thanh requested that whoever bought bonds from the 25 lots should come to the authorities to make a report.

In the first case against Lan, prosecutors on Dec. 15 had charged her with bribery, violating bank regulations, and embezzlement.

85 other individuals are also charged with a total of six crimes.

Among the defendants are 45 leaders and officers of SCB; 15 former State Bank officials; three former Government Inspectorate officers and a former State Audit officer.

All were prosecuted for one of the following crimes: embezzlement, receiving bribes, abusing position and power while performing official duties, lack of responsibility causing serious consequences and violating bank regulations.

Lan is accused of owning as much as 91.5% stake in SCB, but registered it under different people, and used her power to withdraw money through loans with a network of over 1,000 companies affiliated with Van Thinh Phat.

From February 2018 to October 2022, Lan directed the establishment of 916 SCB loan applications worth VND545 trillion and stole VND304 trillion. The loans had an unpaid interest of VND130 trillion.

Lan’s crime also caused a damage of VND64.6 trillion to SCB for violating bank regulations.

Lan used bribery to hide the ailing financial situation of SCB. She instructed her subordinates to bribe inspectors, including former Head of the Department of Inspection and Supervision of the State Bank of Vietnam Do Thi Nhan, who allegedly received $5.2 million in total.