The Ho Chi Minh City People's Court, on the afternoon of 4/5, concluded a multi-day trial by sentencing Hua Xuong, brother of Hua Thi Phan and former board member of Phu My Company, to 12 years in prison for fraud and appropriation of property. Xuong was tried in absentia as he is currently a fugitive.

Also sentenced were Tran Hoang Trinh, a former director, who received a 6-year prison term, and three other former Phu My Company board members: Hua Thi Bich Hanh, Ngo Nguyen Doan Trang, and Lam Kim Dung, who received sentences ranging from 3 to 3 years and 6 months for the same offense.

Hua Thi Phan, the former chairwoman of Phu My Company, was identified as the mastermind behind the scheme. She was accused of instructing the defendants to create fraudulent loan applications to the bank, benefiting from the entire embezzled amount and bearing primary responsibility. However, Phan passed away in 2023 and was not subject to prosecution.

In connection with the case, Pham Thi Mai Toan, former director of Agribank's Mac Thi Buoi branch, received a 5-year prison sentence. Additionally, three of her subordinates were sentenced to 3 to 5 years for violating banking regulations and other related banking activities. These officials were found to have approved loan applications despite insufficient conditions, enabling Phan's group to embezzle the funds.

The court acknowledged the defendants' actions in aiding Phan to embezzle a substantial sum as particularly serious. However, it also noted several mitigating circumstances, including their honest testimonies, advanced age, and the fact that the consequences of the case have been remedied. These factors led to a partial reduction in their responsibility.

During the trial, a bank representative stated that the defendants' families provided additional real estate assets to the bank to mitigate the damages. The bank subsequently auctioned off the debt to a debt trading company, recovering over 80,6 billion VND. Consequently, the bank's losses have now been fully recovered.

The defendants in court today. *Photo: Hai Duyen*

The fraudulent scheme originated in 2003 when Phu My Joint Stock Company was allocated a land plot nearly 280,000 m2 in area at zone 13D, Phong Phu commune (former Binh Chanh district). This land was intended for the development of the Garden City residential project. Phu My Company used 240,000 m2 to establish a joint venture with two foreign companies for the project. However, the remaining nearly 40,000 m2 had not completed financial obligations and lacked land use rights certificates.

Authorities determined that Phu My Company did not possess ownership or usage rights over the entire land plot and related assets, nor did it have sufficient financial capacity. Despite these shortcomings, Phan instructed relatives, acquaintances, and employees to act as company leaders, sign meeting minutes, and create fraudulent loan applications to the bank.

After multiple disbursements, Phan received nearly 250 billion VND. She repaid over 170 billion VND, leaving an outstanding debt of over 89 billion VND. The company later added collateral valued at over 16 billion VND, but the remaining amount, over 73 billion VND, was determined to have been embezzled.