Vietnamese real estate tycoon, already sentenced to death for fraud, faces trial on new charges

HANOI, Vietnam (AP) — The second trial for Vietnamese real estate typcoon Truong My Lan — who was sentenced to death for financial fraud in April — started on Thursday, state media reported.

The 67-year-old chair of the real estate company Van Thinh Phat was convicted for orchestrating Vietnam's biggest ever financial fraud case, amounting to $12.5 billion — nearly 3% of the country’s 2022 GDP and for illegally controlling a major bank allowing loans that resulted in losses of $27 billion, state media said.

Her arrest and conviction was one of the highest profile cases in an anti-corruption drive that has intensified since 2022. The so-called blazing furnace campaign has also singed the highest echelons of Vietnamese politics and led to the resignation of a former president who was implicated in it.

Lan is being tried on fresh charges of appropriating property fraudulently and money laundering. According to a police investigation, she raised $1.2 billion from nearly 36,000 investors by issuing bonds illegally through four companies, state media reports say.

Investigators found 21 companies controlled by Lan's Van Thinh Phat that illegally transferred over $4.5 billion in and out of Vietnam between 2012-2022.

She is also accused of siphoning off $18 billion obtained through fraud.

The case also involves 33 other defendants. It is expected to last a month.

Lan and her family established the Van Thing Phat company in 1992 after Vietnam shifted from a state-run economy to a more market-oriented approach that was open to foreign investors. She started out helping her mother, a Chinese entrepreneur, sell cosmetics in Ho Chi Minh City’s oldest market, according to the state media outlet Tien Phong.

Van Thinh Phat became one of Vietnam’s richest real estate firms, with projects including luxury residential buildings, offices, hotels and shopping centers. This made her a key player in the country’s financial industry.

Lan’s first trial shocked many Vietnamese. Analysts said the scale of the scam raised questions about whether other banks or businesses had similarly erred, dampening Vietnam’s economic outlook and making foreign investors jittery at a time when Vietnam is trying to position itself as the ideal home for businesses trying to diversify supply chains away from China.

Business woman Truong My Lan, a real estate tycoon sentenced to death for financial fraud, attends her second trial in Vietnam's largest fraud case in Ho Chi Minh City, Vietnam Thursday, Sept. 19, 2024. (Thanh Tung/VNExpress via AP)

Businesswoman Truong My Lan, a real estate tycoon sentenced to death for financial fraud, attends her second trial in Vietnam's largest fraud case in Ho Chi Minh City, Vietnam Thursday, Sept. 19, 2024. (Thanh Tung/VnExpress via AP)

Business woman Truong My Lan, center, a real estate tycoon sentenced to death for financial fraud, attends her second trial in Vietnam's largest fraud case in Ho Chi Minh City, Vietnam Thursday, Sept. 19, 2024. (Thanh Tung/VNExpress via AP)

Business woman Truong My Lan, a real estate tycoon sentenced to death for financial fraud, attends her second trial in Vietnam's largest fraud case in Ho Chi Minh City, Vietnam Thursday, Sept. 19, 2024. (Thanh Tung/VnExpress via AP)

Business woman Truong My Lan, a real estate tycoon sentenced to death for financial fraud, attends her second trial in Vietnam's largest fraud case in Ho Chi Minh City, Vietnam Thursday, Sept. 19, 2024. (Thanh Tung/VnExpress via AP)

TUNIS, Tunisia (AP) — One of the candidates challenging Tunisian President Kais Saied in the country's presidential election next month has been sentenced to prison on fraud charges that his attorney decried as politically motivated.

Two weeks after his arrest, a court in the city of Jendouba handed down a 20-month sentence for Ayachi Zammel on Wednesday evening, after convicting him of falsifying the signatures he gathered to file the candidacy papers needed to run for president. Zammel faces more than 20 charges in jurisdictions throughout Tunisia, including four that will be heard on Thursday.

The little-known businessman and head of Tunisia’s Azimoun party is one of two candidates challenging Saied in the North African nation’s Oct. 6 election.

His attorney Abdessattar Messaoudi said Zammel planned to conduct his campaign from behind bars.

“This is no surprise. We expected such a ruling given the harassment he has been subjected to since announcing his candidacy,” Messaoudi told The Associated Press.

Tunisia's election authority, ISIE, said Thursday that Zammel's imprisonment wouldn't affect his eligibility to run. Zammel will appear on the ballot alongside Saied and the only other approved candidate, Zouheir Maghzaoui, a former Saied supporter whose pan-Arabist party Echaab party was previously close to the president.

Zammel is among a long list of Saied's opponents who have faced criminal charges and prosecution in the volatile period leading up to October's election. In July, a court sentenced presidential candidate Lotfi Mraihi to eight months in prison on vote buying charges and banned him from politics. Last month, courts sentenced two candidates — Nizar Chaari and Karim Gharbi — on similar signature fraud charges.

After a court required Tunisia's election authority to reinstate three candidates who had been ruled ineligible to run, one of them — Abdellatif El Mekki — was arrested on charges that stemmed from a 2014 murder investigation that critics have called politically motivated.

Saied's two most prominent critics, the right-wing Free Destourian Party’s Abir Moussi and the Islamist party Ennahda's Rached Ghannouchi, have also been in prison since last year.

Civil liberty advocates have decried the crackdown as a symptom of Tunisia's democratic backslide. Amnesty International this week called it “a clear pre-election assault on the pillars of human rights and the rule of law.”

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Metz reported from Rabat, Morocco.

A cameraman films a press conference held by Abdessatar Messaoudi, attorney of Tunisian presidential candidate Ayachi Zammel, seen on the poster on the wall, after Zammel was sentenced to prison on fraud charges that Messaoudi decried as politically motivated, in Tunis, Monday, Sept. 16, 2024 (AP Photo/Ons Abid)

Abdessatar Messaoudi, attorney of Tunisian presidential candidate Ayachi Zammel, seen on the poster on the stand, speaks during a press conference after Zammel was sentenced to prison on fraud charges that Messaoudi decried as politically motivated, in Tunis, Monday, Sept. 16, 2024 (AP Photo/Ons Abid)

Abdessatar Messaoudi, right, attorney of Tunisian presidential candidate Ayachi Zammel, seen on the poster on the wall, speaks during a press conference after Zammel was sentenced to prison on fraud charges that Messaoudi decried as politically motivated, in Tunis, Monday, Sept. 16, 2024 (AP Photo/Ons Abid)

Abdessatar Messaoudi, right, attorney of Tunisian presidential candidate Ayachi Zammel, seen on the poster on the wall, speaks during a press conference after Zammel was sentenced to prison on fraud charges that Messaoudi decried as politically motivated, in Tunis, Monday, Sept. 16, 2024 (AP Photo/Ons Abid)