LONG XUYEN, An Giang Province – A court in Vietnam's Mekong Delta province of An Giang on Tuesday delivered its verdict in a massive fraud case, sentencing 19 defendants—mostly directors and employees of local seafood companies—for their roles in a scheme that defrauded the An Giang branch of Vietcombank of over 600 billion VND (approximately US$24 million).
The alleged mastermind of the sophisticated operation, who remains a fugitive and was tried in absentia, was handed a life sentence.
The People's Court of An Giang Province concluded a multi-day trial this morning, finding the defendants guilty of "fraudulent appropriation of assets." The sentences for the 19 individuals present ranged from several years to more than a decade in prison, depending on their level of involvement in the conspiracy.
The case centers on a group of executives from several related seafood processing companies, including Việt An Company, who colluded to create a complex web of deceit to secure and embezzle huge loans from Vietcombank, one of Vietnam's largest state-owned commercial banks.
According to the indictment, the scheme's ringleader orchestrated a plan between 2010 and 2012 to fabricate business records and manipulate assets. The core of the fraud involved:
Inflating Inventory: The companies created false documentation showing vastly inflated inventory levels in their warehouses.
Falsifying Collateral: This falsified inventory was then used as collateral to apply for substantial lines of credit from the Vietcombank An Giang branch.
Creating Sham Transactions: The defendants set up a network of shell companies to create fake purchase orders and sales contracts among themselves, generating a false impression of a thriving business operation to justify the loans.
Misappropriation of Funds: Once the loan funds were disbursed, the executives did not use the money for business operations as stated, but rather diverted it for personal use and other illicit activities, leading to the eventual default.
The court determined that the defendants' actions caused severe financial losses to the state-owned bank and demonstrated a blatant disregard for the law. The fugitive mastermind was judged to have directed the entire operation, making them the most culpable.
This high-profile verdict is part of a broader anti-corruption campaign in Vietnam that has targeted illicit activities across various sectors, including banking and finance. The case has been closely watched in An Giang, a major hub for Vietnam's vital aquaculture and seafood export industry, and serves as a stark warning about corporate governance and lending practices in the region.
