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Death sentence upheld for property tycoon in Vietnam — unless she pays $9 billion before execution
A Vietnamese court upheld the death penalty Tuesday for a property tycoon in a multibillion-dollar fraud case — but said her life could still be spared if she paid back three quarters of the assets she embezzled.
Property developer Truong My Lan, 68, was convicted this year of swindling money from Saigon Commercial Bank (SCB) — which prosecutors said she controlled — and sentenced to death for fraud totaling $27 billion.
She appealed the verdict in a month-long trial, but on Tuesday the court in Ho Chi Minh City determined that there was “no basis” to reduce her sentence.
However, there is still a chance for Lan to escape the death penalty.
The court said Tuesday that if she returns three-quarters of the stolen assets, her sentence could be reduced to life imprisonment.
That means she could still avoid execution if she returns $9 billion, or three-quarters of the $12 billion she embezzled, the BBC reports. It’s not her final appeal and she can still petition the president for amnesty.
“The total value of her holdings actually exceeds the required compensation amount,” lawyer Nguyen Huy Thiep told the BBC before her appeal was rejected. “However, these require time and effort to sell, as many of the assets are real estate and take time to liquidate. Truong My Lan hopes the court can create the most favorable conditions for her to continue making compensation.”
She is now essentially in a race to raise the funds she needs before her execution, the BBC reports.
Her husband Eric Chu Nap Kee, a Hong Kong billionaire, had his sentence reduced from nine years in prison to seven.
Tens of thousands of people who invested their savings in SCB lost money, shocking the communist nation and prompting rare protests from the victims.
Lan, who founded real estate development group Van Thinh Phat, earlier told the court that “the quickest way” to repay the stolen funds would be “to liquidate SCB, and sell our assets to repay SBV (State Bank of Vietnam) and the people”.
During her trial, Lan was sometimes defiant, but in the recent hearings for her appeal against the sentence she was more contrite, the BBC reported. She said she was ashamed to have been such a drain on the state, and that her only thought was to pay back what she had taken.
“I feel pained due to the waste of national resources,” Lan said last week, adding she felt “very embarrassed to be charged with this crime.”
Her defense team had argued that she already paid back the money needed to be eligible for a sentence reduction.
Lan has turned over more than 600 family properties to the court, it acknowledged — but it was unclear how much money they were worth.
Lan’s lawyer told AFP on Tuesday that in any case, it would likely be years before Lan faces execution, which is carried out by lethal injection in Vietnam.
Lan owned just five percent of shares in SCB on paper, but at her trial, the court concluded that she effectively controlled more than 90 percent through family, friends and staff.
In April, a former chief inspector of the State Bank was given life in prison for accepting a five-million-dollar bribe to overlook financial problems at SCB. The court upheld the sentence on Tuesday.
The bank said in April that it pumped funds into SCB to stabilise it, without revealing how much.
Among the assets that Lan and Van Thinh Phat own are a shopping mall, a harbour and luxurious housing complexes in business hub Ho Chi Minh City.
During her first trial in April, Lan was found guilty of embezzling $12.5 billion, but prosecutors said the total damages caused by the scam amounted to $27 billion — equivalent to around six percent of the country’s 2023 GDP. The figure dwarfs even the amount that FTX cryptocurrency exchange founder Sam Bankman-Fried was convicted of swindling his customers out of, estimated at around $10 billion.
Lan and dozens of defendants, including senior central bank officials, were arrested as part of a national corruption crackdown dubbed the “burning furnace” that has swept up numerous officials and members of Vietnam’s business elite.
Aside from Lan, a total of 47 other defendants requested reduced sentences at the appeal.
Last month, Lan was convicted of money laundering and jailed for life in a separate case.
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Memphis police discriminate against Black people and use excessive force, Justice Department report finds
The Memphis Police Department uses excessive force and discriminates against Black people, according to the findings of a U.S. Department of Justice investigation launched after the beating death of Tyre Nichols after a traffic stop in 2023.
A report released Wednesday marked the conclusion of the investigation that began six months after Nichols was kicked, punched and hit with a police baton as five officers tried to arrest him after he fled a traffic stop.
The report says that “Memphis police officers regularly violate the rights of the people they are sworn to serve.”
“The people of Memphis deserve a police department and city that protects their civil and constitutional rights, garners trust and keeps them safe,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said in an emailed statement.
The city said in a letter released earlier Wednesday that it would not agree to negotiate federal oversight of its police department until it could review and challenge results of the investigation.
City officials had no immediate comment on the report but said they plan to hold a news conference Thursday after Justice Department officials hold their own news conference in Memphis on Thursday morning to address the findings.
Police video showed officers pepper spraying Nichols and hitting him with a Taser before he ran away from a traffic stop. Five officers chased down Nichols and kicked, punched and hit him with a police baton just steps from his home as he called out for his mother. The video showed the officers milling about, talking and laughing as Nichols struggled with his injuries.
Nichols died on Jan. 10, 2023, three days after the beating. The five officers — Tadarrius Bean, Demetrius Haley, Emmitt Martin, Desmond Mills Jr. and Justin Smith — were fired, charged in state court with murder, and indicted by a federal grand jury on civil rights and witness tampering charges.
Nichols was Black, as are the former officers. His death led to national protests, raised the volume on calls for police reforms in the U.S., and directed intense scrutiny towards the police department in Memphis, a majority Black city.
The report specifically mentions the Nichols case, and it addresses the police department’s practice of using traffic stops to address violent crime. The police department has encouraged officers in specialized units, task forces, and on patrol to prioritize street enforcement, and officers and community members have described this approach as “saturation,” or flooding neighborhoods with traffic stops, the report said.
“This strategy involves frequent contact with the public and gives wide discretion to officers, which requires close supervision and clear rules to direct officers’ activity,” the report said. “But MPD does not ensure that officers conduct themselves in a lawful manner.”
The report said prosecutors and judges told federal investigators that officers do not understand the constitutional limits on their authority. Officers stop and detain people without adequate justification, and they conduct invasive searches of people and cars, the report said.
“Black people in Memphis disproportionately experience these violations,” the report said. “MPD has never assessed its practices for evidence of discrimination. We found that officers treat Black people more harshly than white people who engage in similar conduct.”
The investigation found that Memphis officers resort to force likely to cause pain or injury “almost immediately in response to low-level, nonviolent offenses, even when people are not aggressive.”
The report says officers pepper sprayed, kicked and fired a Taser at an unarmed man with a mental illness who tried to take a $2 soda from a gas station. By the end of an encounter outside the gas station, at least nine police cars and 12 officers had responded to the incident, for which the man served two days in jail for theft and disorderly conduct.
In a letter to the Justice Department’s Civil Rights Division released earlier Wednesday, Memphis City Attorney Tannera George Gibson said the city had received a request from the DOJ to enter into an agreement that would require it to “negotiate a consent decree aimed at institutional police and emergency services.”
A consent decree is an agreement requiring reforms that are overseen by an independent monitor and are approved by a federal judge. The federal oversight can continue for years, and violations could result in fines paid by the city.
It remains to be seen what will happen to attempts to reach such agreements between cities and the Justice Department once President-elect Donald Trump returns to office and installs new department leadership. The Justice Department under the first Trump administration curtailed the use of consent decrees, and the Republican president-elect is expected to again radically reshape the department’s priorities around civil rights.
“Until the City has had the opportunity to review, analyze, and challenge the specific allegations that support your forthcoming findings report, the City cannot — and will not — agree to work toward or enter into a consent decree that will likely be in place for years to come and will cost the residents of Memphis hundreds of millions of dollars,” the letter said.
The officers in the Nichols case were part of a crime suppression team called the Scorpion Unit, which was disbanded after Nichols’ death. The team targeted drugs, illegal guns and violent offenders, with the goal of amassing arrest numbers, while sometimes using force against unarmed people.
Memphis police never adopted policies and procedures to direct the unit, despite alarms that it was minimally supervised, according to the Justice Department report. Some prosecutors told department investigators that there were some “outrageous” inconsistences between body camera footage and arrest reports, and if the cases went to trial, they would be “laughed out of court.” The report found that the unit’s misconduct led to dozens of criminal cases being dismissed.
In court proceedings dealing with Nichols’ death, Martin and Mills pleaded guilty to the federal charges under deals with prosecutors. The other three officers were convicted in early October of witness tampering related to the cover-up of the beating. Bean and Smith were acquitted of civil rights charges of using excessive force and being indifferent to Nichols’ serious injuries.
Haley was acquitted of violating Nichols’ civil rights causing death, but he was convicted of two lesser charges of violating his civil rights causing bodily injury. The five men face sentencing by a federal judge in the coming months.
Martin and Mills also are expected to change their not guilty pleas in state court, according to lawyers involved in the case. Bean, Haley and Smith have also pleaded not guilty to state charges of second-degree murder. A trial in the state case has been set for April 28.
Justice Department investigators have targeted other cities with similar probes in recent years, including Minneapolis after the killing of George Floyd, and Louisville, Kentucky, following an investigation prompted by the fatal police shooting of Breonna Taylor.
In its letter, the city of Memphis said the DOJ’s investigation “only took 17 months to complete, compared to an average of 2-3 years in almost every other instance, implying a rush to judgment.”
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