Notorious ex-banker guilty of US$666 million loss
Police have concluded that ex-banker Pham Cong Danh caused additional losses of more than VND6 trillion (around US$266 million) in the second stage investigation into his case, solidifying the investigation’s record as the biggest economic probe in Vietnam’s history.
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Following the first trial on the VNCB case, in which Danh was sentenced for 30 years in prison, the police initiated another investigation into the trillion-loans made since 2012 between the VNCB and another three banks: the Sai Gon Thuong Tin (Sacombank), the Tien Phong (TPBank) and the Vietnam Investment and Development (BIDV).
The police on July 11 announced that it finished its investigation, asking the Supreme People’s Procuracy to prosecute Danh and his 23 partners in crime for deliberate breach of law.
According to the police, the ex-banker ordered his underlings to make up blank documents to turn more than VND1.8 trillion of the VNCB into the collateral for an equivalent loan from the Sacombank. Danh spent the money to pay off some VND1.7 trillion of debts for his six companies, while the rest was for personal use.
Using the same trick, Danh transited another VND1.7 trillion of the VNCB to the TPBank for a loan to clear off debts of his Thien Thanh corporation and other activities.
He also ordered 12 companies he established by him to make loans from the BIDV using more than VND3 trillion of the VNCB as collateral assets.
The police found that Danh and his underlings caused a total loss of more than VND6 trillion to the VNCB.
HCM City’s Civil Judgment Enforcement Department Head Vu Quoc Doanh on July 10 said that the amount of money needed to be retrieved in the Pham Cong Danh’s case reached nearly VND12 trillion. Of which, the department so far collected more than VND5 trillion, accounting for about 40 percent of the target.
Doanh said that the police managed to seize a large amount of assets during its investigation into the case. At least 95 percent of the losses are likely to be retrievable.
