Life sentence upheld for banker who embezzled $51m

The Supreme People’s Procuracy on Friday upheld the life sentence given two years ago to Huynh Thi Huyen Nhu, former deputy chief of the Risk Management Department of the HCM City branch of VietinBank, for swindling customers out of nearly VND1.085 trillion (US$51 million). — VNA/VNS Photo Hoang Hai

The five companies affected include ORS Securities, SaigonBank - Berjara, Global Insurance Corporation, An Loc, and Hung Yen.

The Procuracy said the charge of "swindling to appropriate assets", and not the proposed “assets embezzlement” charges, was correct.

Nhu was asked to compensate the five companies for all of their losses.

The court also accused Vo Anh Tuan, deputy director of VietinBank’s Nha Be branch, of "swindling to appropriate assets" and suggested a prison sentence of 12-14 years.

According to the Procuracy, Nhu and Tuan’s behavior was particularly dangerous for society because it violated the assets of many units, including those owned by the state.

"The behavior of the defendants also violated the order of economic management, which partly affected State management agencies and the banking sector, causing a public loss of confidence in the banking systems," the representative said.

At the trial, representatives of the five companies asked the judicial council to force Vietinbank to pay compensation for both the original loans and accrued interest taken out by Huyen Nhu because the account was actually at Vietinbank.

ORS Securities claimed over VND900 billion ($42.5 million) in losses, Saigonbank Berjara Securities (SBBS) VND220 billion ($10.3 million), Global Insurance company VND149 billion ($7 million), An Loc company VND400 billion ($18.9 million), and Hung Yen company VND400 billion ($18.9 million).

A representative of Vietinbank rejected the charge and said at the trial: "All policies and activities of the bank are not contrary to law and not contrary to the regulations of the State Bank of Viet Nam."

According to representatives of Vietinbank, the five companies “were seduced by Huyen Nhu, and did not comply with the law, signing a false contract to rent out their accounts”.

The companies’ actions “derived from their greed and personal interests of the broker”, the Vietinbank representatives said.

Vietinbank said the claims of the five companies about the bank should be rejected.

According to an earlier verdict, in 2007 Nhu used her position at the bank to raise over VND200 billion ($9.43 million) from banks, organisations, and individuals at high interest rates to invest in the property market.

In 2010, when the market collapsed, she was unable to pay her debts.

Then, to repay loans, in 2008 she began borrowing from a loan shark at interest rates of 0.5-0.6 per cent per day. Two years later, Nhu turned to swindling.

Between March 2010 and September 2011, on the pretext of mobilising deposits, Nhu took VND3.9 trillion ($176 million) from three individuals, nine companies and three banks by paying interest rates higher than those offered by other banks.

She counterfeited seals and documents of agencies and organisations related to the VND1.085 trillion ($51 million) deposited in VietinBank by the five companies.

She stole VND718 billion ($32.5 million) from Asia Commercial Joint Stock Bank, VND200 billion from the Nam Viet Commercial Joint Stock Bank ($9.43 million), and VND180 billion ($8.5 million) from Viet Nam International Bank, according to the court.

Law enforcement authorities discovered and seized many properties owned by Nhu, but their total value only added up to VND230 billion ($10.85 million).

Vo Anh Tuan brought Nhu to Ha Noi and helped Nhu mobilise money from Hung Yen company.

Tuan knew about Nhu’s swindling, but agreed that Nhu could counterfeit deposit contracts between VietinBank’s Nha Be branch and Hung Yen company.

Tuan benefited by receiving VND10 billion ($450,000) from the activity.

The court trial is scheduled to end on February 12. — VNS