Tran Thanh, the leading figure in Vietnam's soft drinks industry, was given an eight-year prison sentence on Thursday for a $40 million fraud, making him the latest well-known business person to be caught in the country's extensive effort to stop corruption.
The communist nation of Vietnam is working to eliminate widespread corruption and has brought charges against over 4,400 individuals, including government officials and high-ranking business figures.
In 2019 and 2020, a court in Ho Chi Minh City found Thanh and his two daughters guilty of deceiving investors about loans.
Thanh, who is 71 years old and serves as the chairman of Tan Hiep Phat beverage group, was determined to have planned scams to take control of assets used as collateral for loans, according to state media.
Even when the borrowers repaid the money with interest, Thanh would not return the assets for various reasons, including claiming that they had lost their right to buy back the assets due to breaching the contract.
Thanh's 43-year-old daughter, Tran Phuong, who is the deputy CEO of the company, was sentenced to four years in prison by the court.
Tran Bich, Thanh's 40-year-old daughter, received a suspended three-year prison sentence.
Tan Hiep Phat, known for its range of bottled tea and energy drinks, is one of Vietnam's largest beverage companies.
Before the court, Thanh expressed regret for what happened and stated his readiness to take responsibility.
Thanh was quoted as saying, “I would like to be given leniency, handing me the chance to come back to society soon for my continued work and devotion.”
Judge Huynh Truc, who announced the verdict in court on Thursday, said that the defendants' actions had “created danger to society.”
The judge remarked, “The defendants knew that their actions were against the law but intentionally committed the crime.”
– ‘Blazing furnace’ –
Vietnam's ongoing campaign against corruption has ensnared some of the country's most successful business leaders.
This effort has been led by Communist Party General Secretary Nguyen Trong, resulting in over 1,700 cases being prosecuted since 2021.
In one of the largest fraud cases in history, real estate mogul Truong Lan was given the death penalty earlier this month for orchestrating a scam that caused estimated losses of $27 billion.
Lan and 85 others, including high-ranking banking officials, were brought to justice and received sentences for various charges such as bribery, abuse of power, misappropriation, and violations of banking laws.
In March, luxury property tycoon Do Dung was sentenced to eight years in prison by a Hanoi court for deceiving thousands of investors in a $355 million bond scam.
State media reported that Dung and his son, who was given a three-year prison sentence, have already paid back the $355 million.
AFP
