Nguyễn Cao Trí, former CEO of Saigon – Đại Ninh Tourism Investment Company. — VNA/VNS Photo

Speaking at a government press conference on Saturday, Tô Ân Xô, the Public Security Ministry’s spokesperson, said Trí’s arrest is part of an ongoing investigation into a high-profile fraud case at the An Đông Company, a subsidiary of Vạn Thịnh Phát Group. 

Trí had a business relationship with Trương Mỹ Lan, chairwoman of Vạn Thịnh Phát Group, who had transferred the substantial sum of money to him for project trading and business purposes.

Trí’s alleged embezzlement occurred when Lan was arrested last October for alleged fraud related to the issuance and trading of bonds.

Trí had instructed employees to destroy all documents and papers that proved Lan transferred him the $40 million, with the intention of appropriating the money for himself. 

While Trí has admitted to his crime and promised to repay the misappropriated funds, his properties have been frozen by authorities, ensuring that he cannot dissipate the ill-gotten gains, according to investigators.

Trí held several positions at member companies of Bến Thành Group, such as investment director for Bến Thành Tourist, and general director at the Bến Thành Land Investment company.

Trí joined the management board of SaigonBank in October 2019. In June 2021, he purchased around 580,000 shares of the bank, worth around 0.19 per cent of its charter capital. 

He lost his position as a member of the management board on January 19.

Trương Mỹ Lan, aged 66, also known as Trương Muội, is a prominent Chinese-Vietnamese billionaire in Việt Nam’s business community. Her husband is a real estate entrepreneur in Hong Kong (China), local media stated.

Her company has extensive investments in commerce, hospitality, and real estate, being the owner of major projects and buildings in prime locations in HCM City.

In 1992, Lan established Vạn Thịnh Phát Co., Ltd. operating in the fields of commerce and hospitality, which then expanded to the real estate sector. 

In addition to Trí’s arrest, the Inspection and Supervision Department of the State Bank of Vietnam is also facing legal proceedings for abuse of position and powers. 

“Severe punishment awaits those who misappropriate money and assets entrusted to them by their business partners during legal issues,” warned the Ministry of Public Security’s spokesperson. — VNS