Victims demand urgent resolution of $1 billion Van Thinh Phat bond fraud

HO CHI MINH – Victims of the billion-dollar Vạn Thịnh Phát bond fraud case are urging authorities to speed up the investigation as they risk financial ruin.

Lê Thu Thuỷ, 51, a retired civil servant from Ho Chi Minh City, said she invested more than VNĐ2 billion in bonds issued by a subsidiary of Vạn Thịnh Phát two years ago, but she had received no interest or principal.

Thuỷ is among more than 35,000 victims who were misled by Saigon Commercial Joint Stock Bank (SCB) staff, who reassured them that the bonds were “as safe as a savings account » due to Trương Mỹ Lan’s ownership of the bank as chairwoman. of the group.

But SCB said it was only acting as an intermediary and did not guarantee repayment to investors.

Experts said the bank could well be held liable for “failing to disclose the risks associated with the bonds”.

Police said SCB was accused of playing a major role in the massive financial fraud suffered by its clients.

Their investigation revealed that Lan orchestrated a scheme that allowed SCB to issue fake bonds in order to alleviate its financial difficulties.

Lan admitted to working closely with former executives of SCB, Tân Việt Securities and Vạn Thịnh Phát to develop a “specific plan” to manufacture bonds through fake companies set up by the Vạn Thịnh Phát Group.

Võ Tấn Hoàng Văn, former CEO of SCB, held “training sessions” for more than 2,500 salespeople in various branches across the country on how to defraud customers, police said.

Lan admitted his wrongdoing and promised to reimburse the victims, police added.

Victims demand a quick solution to recover their lost funds.

Authorities said police have already seized millions of dollars in assets linked to Lan in an effort to repay victims affected by the fraud.

Police said they seized assets totaling more than VNĐ590 billion and nearly $15 million, and froze another millions of dollars in assets linked to the president.

The seized assets include 1,240 properties owned by Lan in prime locations in Ho Chi Minh City and various provinces, shares of SCB and other companies, a yacht, two ships and 19 cars.

Additionally, 42 accounts worth VNĐ1.9 trillion and $8.4 million associated with Lan and other convicted individuals were frozen.

Proceeds of nearly VNĐ790 billion linked to a company owned by the Vạn Thịnh Phát group were blocked at the SCB, with an additional VNĐ55.5 billion seized in the prosecution and VNĐ73 billion paid by Lan and others during the trial.

Police said they would seize more assets linked to the scandal as part of efforts to compensate victims.

Authorities are urging the 35,000 victims who hold bonds from the fraudulent issues to provide information and related documents.

Experts estimate that it will take years to mitigate the consequences of this scandal, one of the worst financial crimes in the world.