On 27/8, the Ho Chi Minh City People's Court sentenced Luu Quang Lam, 66, former chairman of Dai Hai Company, to life imprisonment for fraud and asset appropriation. Ngo Xuan Truong, 50, former chairman and general director of Dai Hai Company, received a 14-year sentence for abuse of trust and asset appropriation.

The court stated that the defendants' actions directly infringed upon the assets and interests of residents, causing serious consequences. Due to the repeated nature of their offenses, strict penalties were deemed necessary.

Defendants Ngo Xuan Truong (front) and Luu Quang Lam (right, in white shirt) at the trial. Photo: Binh Nguyen

Defendants Ngo Xuan Truong (front) and Luu Quang Lam (right, in white shirt) at the trial. Photo: Binh Nguyen

Regarding civil liability, the court ordered Lam to repay the outstanding debt to the banks. For residents who legally purchased land and houses from the developer, established long-term residency, and were assigned house numbers by the Thu Duc City People's Committee, the court mandated that the banks return the property ownership certificates to Dai Hai Company. The company is then responsible for coordinating with the relevant authorities to issue ownership certificates to the residents.

If Dai Hai Company fails to comply, residents are entitled to contact the authorities directly to obtain their certificates.

The court also recommended further investigation into the banks' lending practices to determine the responsibility of individuals involved in violations of credit institution regulations.

Residents observe the trial. Photo: Hai Duyen

Residents observe the trial. Photo: Hai Duyen

The Hiep Binh Chanh Residential Project, covering nearly 58,000 m2, was assigned to K&N Construction and Investment Consulting Company (later renamed Dai Hai Company) in 2001. Two years later, the company partnered with the Song Da Corporation Branch (now ANI Joint Stock Company) to divide and sell the land. The agreement allocated 180 plots to Dai Hai and 239 plots to Song Da. These plots were subsequently sold to customers.

The court found that during his business operations, Lam borrowed money from several individuals and invested joint capital. In 2012, as chairman and director of Dai Hai Company, Lam signed seven mortgage and guarantee contracts with six other companies for a total of over 208 billion VND, despite knowing that 115 plots within the Hiep Binh Chanh Residential Project had already been sold to residents.

After the discovery of his actions, Lam and other involved parties repaid the bank loans and exchanged other assets for the residents' property ownership certificates. Currently, the banks have received the debt payments and assets, and have no further claims related to the loans guaranteed by Lam. Dong A Bank, however, filed a complaint against Lam for misappropriating 52 billion VND.

Truong, during his tenure as director of Dai Hai Company, mortgaged and transferred 17 land plots worth over 10.7 billion VND (already sold to residents) to various creditors to settle his personal debts exceeding 36 billion VND. These plots were further sold and pledged to multiple parties. Both defendants admitted their wrongdoing during the investigation and trial.

This case has caused years of anxiety and uncertainty for hundreds of families in the Hiep Binh Chanh Residential Project. The developer's illegal mortgaging of their purchased land infringed upon their legal ownership rights. Many residents, despite living in their homes for years, have yet to receive their ownership certificates, hindering administrative procedures such as obtaining house numbers or enrolling their children in school. Some families who borrowed money to purchase the land now face significantly increased debt due to the lack of proper documentation.

Hai Duyen