‘Friend in US’ offers loan to Truong My Lan to compensate bond fraud victims

An anonymous American associate of property tycoon Truong My Lan has expressed interest in lending her funds to compensate victims of her company's bond fraud. A lawyer representing four of Lan’s co-defendants revealed on Tuesday that this individual had offered $250 million to settle a debt and an additional $130 million to compensate the victims.

The $250 million would be used to release the mortgage on a building in Hanoi, where Lan is one of the three primary shareholders, according to the lawyer at the People’s Court of HCMC. The building is currently mortgaged to a foreign bank. Lan responded positively, stating, "That would be great. I accept the offer."

The associate has also offered more financial assistance if Lan agrees to let them manage a 26-hectare property project she owns in HCMC, with the possibility of negotiating its sale later. The individual was also interested in knowing the exact amount required for compensation.

Lan said: "I am unsure of the amount. I'm not asking for a lot. As long as this person is sincere and has the funds, I am willing to accept their help during this difficult time."

Lan has pledged nearly 300 assets, including an 11,000-square-meter "mega project" in downtown HCMC, to help compensate the victims of the bond fraud.

She is currently facing trial for orchestrating a fraudulent bond issuance in 2018, which caused over 35,800 investors to lose VND30 trillion ($1.2 billion). Although Lan denies responsibility, she admitted to allowing Saigon Commercial Bank to issue bonds through four of her companies.

Earlier this year, Lan was sentenced to death for embezzling funds from SCB between 2012 and 2022. She and her accomplices owe the bank VND677 trillion, obtained through 1,300 different loans. In addition to this, the court also found her guilty of bribery and violating banking regulations. Lan has since appealed her death sentence.