This morning, the Ho Chi Minh City People’s Court opened a hearing for a 36-year-old woman and her 22 accomplices involved in a striking swindle case in which they appropriated nearly VND4 trillion (US$188.7 million) from many individuals and banks. The woman, Huynh Thi Huyen Nhu, former deputy head of the Risk Management Department of the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), who was arrested on September 30, 2011, is charged with “swindling to appropriate assets” and “counterfeiting seals and materials of agencies and organizations.” Meanwhile, Vo Anh Tuan, 41, an ex-official at Vietinbank, and four other defendants are charged with “swindling to appropriate assets.” Pham Anh Tuan, 36, director of Thai Binh Duong Petroleum Transport JSC, is indicted for “abusing position and power while on duty.” Huynh Thi Viet Yen, 40, foremen head of the Vietinbank’s Nha Be Branch; Ho Hai Sy, 30, Yen’s ex-deputy; and Le Thi Ngoc Loi, 27, a former employee of the branch, are prosecuted on charges of “being irresponsible and causing serious consequences.” Ten other defendants who were officials and staff of Vietinbank are charged with “violating lending regulations in operations of credit organizations.” Prominent among the remaining defendants is Pham Huu Chi, a loan shark from Ho Chi Minh City, who is charged with “lending upon usury.” The hearing is chaired by Nguyen Duc Sau, chief judge of the criminal court of HCM City People’s Court. Fifteen plaintiffs and aggrieved parties and 79 individuals and organizations whose rights and interests are involved in the case were present in court this morning.

According to the indictment, in early 2007, Nhu, abusing her position and trust, mobilized more than VND200 billion ($9.43 million) in capital from many banks, organizations, and individuals at high interest rates to invest in real estate in HCMC, Da Nang, Ba Ria-Vung Tau, Da Lat, Quang Nam, and An Giang. In order to pay the loans, Nhu had borrowed money from Chi since 2008 at exorbitant interest rates of 0.5-0.6 percent per day, over 10 times higher than the highest lending rate regulated by the State Bank of Vietnam at that time. The total loans Nhu received from Chi amounted to VND17.5 billion, while Chi earned VND6 billion as interest on the principal, investigators said. Two years later, Nhu began to fall into insolvency and turned to swindling in order to repay her debts. From March 2010 until September 2011, Nhu, under the false pretext of mobilizing capital for two Vietinbank branches, obtained loans totaling VND4,911 billion ($231.65 million) from three individuals, nine companies, and three banks. After using more than VND925 billion of this sum to repay her previous loans and the interest incurred to four of her creditors, Nhu appropriated the remaining amount, investigators said. Among Nhu’s victims are Asia Commercial Joint Stock Bank (ACB), Nam Viet Commercial Joint Stock Bank, and Vietnam International Bank’s HCMC Branch. In the process to obtain the loans, Nhu forged nearly 200 documents, including 110 false contracts between Vietinbank’s Nha Be Branch and businesses.

The hearring is scheduled to last for 20 days.