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|Twenty-eight former officials of Dai Tin Bank were sentenced to three to 30 years in jail by the HCM City People’s Court on May 31 after a three-week trial.- VNA/VNS Photo Thanh Chung|
The key defendant, Hua Thi Phan, former senior advisor of the management board of Trust Bank, and former chairwoman of the management board of Phu My Investment and Development JSC, did not appear at the court because of poor health.
She was sentenced to 30 years in jail and must pay compensation of VND16.7 trillion (US$733 million) on both charges.
All of Phan’s assets and shares under other people’s names will be confiscated, the court said.
Bui Thi Kim Loan, accountant for Phu My Co Ltd, was sentenced to 28 years in prison.
Ngo Thi Ngan was sentenced to 10 years for "intentionally violating State regulations”, and must pay compensation of VNĐ208 billion ($9.1 million).
Former chairman of the bank’s board of management Hoang Van Toan was sentenced to seven years, and former general director Tran Son Nam to six years for “intentionally violating State regulations”.
A decision on the disposition of 114 real estate assets, which had been transfered to Pham Cong Danh, will be considered in the next phase of the trial.
Phuong Trang company and other enterprises who co-operated with Phuong Trang company must pay back VND6.4 trillion ($280 million) to the bank.
More than 100 individuals and representatives of organisations appeared in court along with 50 lawyers.
According to the results of the investigation, in June 2010 Hua Thi Phan and Phu Mu Investment and Development JSC and 14 other people bought over 254 million shares of Trust Bank for over VNĐ2.5 trillion ($110 million).
Phan abused her holding of nearly 85 per cent of the bank’s charter capital to take over the management of all Trust Bank activities.
She took over the entire board of management, executive board and staff, and also took over all investment and credit activities. She abused trust to appropriate and misuse more than VNĐ12 trillion (nearly $530 million), the court said.
Phan increased the value of her house at 5 Pham Ngoc Thach Street in District 3 in HCM City to sell her house to Trust Bank, causing financial damages of over VND1.1 trillion ($48.5 million).
Bui Thi Kim Loan, accountant for Phu My Co Ltd, helped Phan embezzle a total amount of nearly VND5.3 trillion ($231.6 million). Through 29 loans from Phu My, Phan embezzled over VND3.6 trillion ($158 million), according to the charges.
She also asked Trust Bank to illegally invest in four other real estate projects, embezzling over VNĐ1 trillion ($44 million), and raised the value of another 25 properties sold to Trust Bank, embezzling over VNĐ1 trillion ($44 million), according to the court.
The investigation police concluded that violations committed by Phan and others caused serious financial damage to Trust Bank, totaling VND6.362 trillion ($280 million), excluding VND5.64 trillion in damages from three other violations, which will be investigated in the second phase of the case.
Previously, at a trial about the loss of more than VND9 trillion ($395 million) at Vietnam Construction Bank (VNCB), HCM City People’s Court decided to launch criminal proceedings against Phấn for “violating lending regulations of credit institutions” and “deliberately violating State regulations on economic management, causing severe consequences”.
In 2012, Dai Tin Bank was restructured and rebranded as VNCB, and Pham Cong Danh became chairman of the bank’s management board.
Danh was later accused of devising scams to steal from the bank, including setting up fraudulent companies and fake documents to take out huge loans, which caused losses of over VND9 trillion.