On June 2, the High People's Court in Ho Chi Minh City opened an appellate hearing in a case involving charges of "Embezzlement" and "Abuse of Position and Power While Performing Official Duties" against defendant Le Thuy Hang, 56, former CEO of SJC, and her accomplices.

The appeal hearing was convened following petitions from Hang and 11 other defendants seeking lighter sentences.

Previously, the Ho Chi Minh City People's Court sentenced Hang to 17 years in prison for embezzlement and eight years for abuse of power while performing official duties. The combined sentence totaled 25 years. Other defendants received penalties ranging from suspended two-year prison terms to 22 years and six months in prison.

According to the first-instance verdict, SJC was assigned by the State Bank of Vietnam (SBV) to reprocess damaged gold bars, manufacture SJC gold rings, and sell SJC gold bars as part of efforts to stabilize the domestic gold market. The company was also authorized to determine the selling price of SJC gold bars.

Whenever SJC carried out gold processing operations, the SBV established a supervisory team to oversee the entire production process at the Tan Thuan gold workshop. The team consisted of four members assigned different responsibilities and monitored every stage of production both directly and through surveillance cameras.

Despite the strict oversight, prosecutors said Hang and her subordinates exploited loopholes in the supervision process by bringing externally sourced gold into the production line to manufacture SJC gold bars in violation of regulations. The products were then sold on the market, generating tens of billions of dong in illicit profits.

According to the verdict, Hang instructed Mai Quoc Uy Vien, former director of the SJC gold workshop, and Tran Tan Phat, former deputy director of the workshop, to insert outside gold materials into 56 separate batches of damaged gold bars being reprocessed under SBV orders. Through this scheme, the group produced 6,255 taels of SJC gold bars unlawfully, causing losses exceeding VND74 billion ($2.84 million) and generating illegal profits of more than VND64 billion ($2.46 million).

In addition, Hang directed Nguyen Thi Hue, director of SJC's Hai Phong branch, to purchase gold materials from outside sources and deliver them to Phat for the unauthorized production of more than 11,503 taels of SJC gold rings.

Prosecutors also accused Hang of instructing the directors of SJC's Hai Phong and Central Vietnam branches, along with the company's gold trading manager, to sell only part of the gold allocated for price stabilization to customers. The remainder was allegedly withheld and sold externally at prices higher than the official listed rates, in violation of regulations.

False reports used to inflate production loss rates and embezzle 95 taels of gold

Beyond the unauthorized production activities, Hang was also accused of masterminding the embezzlement of 95 taels of gold belonging to SJC.

According to prosecutors, in mid-2024, the State Bank of Vietnam delivered two batches totaling 10 tonnes of raw gold to SJC for the production of SJC gold bars. Hang allegedly instructed Vien and Phat to prepare falsified reports inflating allowable production loss rates during the manufacturing process.

Phat and several employees subsequently removed 91 taels of gold from the 10 tonnes supplied by the central bank and used the material to manufacture five-chi SJC gold rings, which were then delivered to Hang.

During periodic workshop cleanups designed to recover gold dust and residue, Phat and other employees allegedly misappropriated an additional four taels of gold. The gold was melted into three small ingots and handed over to Hang.

Authorities determined that Hang's actions caused losses to state assets totaling VND95.7 billion ($3.68 million), while she personally benefited by VND73.5 billion ($2.83 million).

Related developments in the case show that prosecutors previously identified Hang as the mastermind and principal organizer of the scheme, recommending a total prison sentence of 28 to 30 years.

During earlier court proceedings, Hang argued that SJC was facing significant difficulties when she assumed the role of CEO. She claimed that under her leadership the company achieved strong growth within three years and maintained that her actions were intended to improve the welfare of employees.

Investigators concluded that the unauthorized introduction of externally purchased gold into SJC's production facilities enabled the illegal manufacture of 6,255 taels of SJC gold bars, generating unlawful profits exceeding VND64 billion ($2.46 million).

Thanh Phuong