A prominent Vietnamese real estate magnate was sentenced to death on Thursday for embezzling an estimated $27 billion.

Truong My Lan, the chair of major developer Van Thinh Phat, faced a panel of three hand-picked jurors and two judges in Ho Chi Minh City. They rejected all defense arguments, finding her guilty of swindling cash from Saigon Commercial Bank (SCB) over a decade.

The verdict stated, "The defendant's actions ... eroded people's trust in the leadership of the (Communist) Party and state," highlighting the severity of the case.

Lan denied the charges and blamed her subordinates.

After a five-week trial in the business hub Ho Chi Minh City, 85 others also face verdicts and sentencing on charges ranging from bribery and abuse of power to appropriation and violations of banking law.

Lan embezzled $12.5 billion, but prosecutors said Thursday the total damages caused by the scam now amounted to $27 billion – a figure equivalent to 6% of the country's 2023 GDP.

The death sentence is an unusually severe punishment in such a case.

She and the others were arrested as part of a national corruption crackdown that has swept up numerous officials and members of Vietnam's business elite in recent years.

Lan appeared to say in final remarks to the court last week that she had thoughts of suicide.

"In my desperation, I thought of death," she said, according to state media.

"I am so angry that I was stupid enough to get involved in this very fierce business environment – the banking sector – which I have little knowledge of."

Protests erupt

Hundreds of people began to stage protests in the capital Hanoi and Ho Chi Minh City, a relatively rare occurrence in the one-party communist state, after Lan's arrest in October 2022.

Police have identified around 42,000 victims of the scandal, which has shocked the Southeast Asian country.

Lan, who is married to a wealthy Hong Kong businessman also on trial, was accused of setting up fake loan applications to withdraw money from SCB, in which she owned a 90% stake.

Police say the scam's victims are all SCB bondholders who cannot withdraw their money and have not received interest or principal payments since Lan's arrest.

Prosecutors said during the trial they had seized more than 1,000 properties belonging to Lan.

Authorities have also said $5.2 million allegedly given by Lan and some SCB bankers to state officials to conceal the bank's violations and poor financial situation was the largest-ever bribe recorded in Vietnam.

The woman who was offered the bribe – Do Thi Nhan, the former head of the State Bank of Vietnam's inspection team – said during the trial the cash was handed to her in Styrofoam boxes by the former CEO of SCB, Vo Tan Van.

After realizing they contained money, Nhan refused the boxes but Van declined to take them back, state media reported.

More than 4,400 people have been indicted during Vietnam's corruption crackdown, across more than 1,700 graft cases, since 2021.

A top Vietnamese luxury property tycoon – Do Anh Dung, head of the Tan Hoang Minh group – was sentenced to eight years in prison last month after he was found guilty of cheating thousands of investors in a $355 million bond scam.