Tycoon Nguyen Cao Tri arrested for appropriating $40 mln from scandal-hit businesswoman Truong My Lan

Nguyen Cao Tri, general director of Saigon-Dai Ninh Tourism Investment Joint Stock Company, has been detained for allegedly appropriating $40 million from Truong My Lan, former chairwoman of Van Thinh Phat Group.

The money is the sum that Lan transferred to Tri to buy a project. Lan was arrested on October 8, 2022 for alleged fraud in the issuance and trading of corporate bonds in 2018 and 2019. When Lan was arrested, Tri had an intention to appropriate the money.

Lieutenant General To An Xo, spokesman of the Ministry of Public Security, told a monthly government press meeting on Saturday that Tri had been detained on January 15 by the ministry's investigative agency for the crime of abusing trust to appropriate property in line with Article 175 of the Penal Code.

Tri, 53, is also a council member of the Ho Chi Minh City-based Van Lang University.

The move was part of an expanded investigation into the case that happened at An Dong Company, a unit of Van Thinh Phat Group, after investigators discovered that Truong My Lan had a business relationship with Tri.

Lan transferred more than $40 million to Tri to buy a project. When Lan was arrested, Tri had an intention to appropriate this money.

"Tri instructed his employees to destroy all documents and evidence that show Lan had transferred him $40 million with the aim of appropriating the money," said the ministry spokesman.

According to Xo, at the investigation agency, defendant Tri admitted to the alleged act and promised to return the money appropriated. The investigative agency has frozen Tri's assets to ensure asset recovery.

"The Ministry of Public Security warns that the law will strictly handle those who use tricks to appropriate money and property transferred by their partner who is being handled as a criminal," said Xo.

Tri is well-known in the Vietnamese business world. He held management positions at several member companies of Ben Thanh Group such as director of investment at Ben Thanh Tourist and general director of Ben Thanh Real Estate Investment Company.

In 2015, Ben Thanh Real Estate, which involves real estate and food-beverage business lines, changed its name to Capella Holdings, with Tri as board chairman cum general director.

Tri joined the board of directors at Saigonbank in October 2019. In June 2021, he bought nearly 580,000 SGB shares - equivalent to 0.19% of the private bank's charter capital.

In January 2023, Saigonbank announced that Nguyen Cao Tri was no longer a Saigonbank board member for the 2019-2024 term.

Truong My Lan, then chairwoman of HCMC-based property developer Van Thinh Phat Group, was arrested on October 8, 2022 for alleged fraud in the issuance and trading of corporate bonds in 2018 and 2019.

Lan and her accomplices allegedly misappropriated trillions of dong (VND1 trillion = $41.87 million) from the public in the 2018-2019 period via the issuance and trading of corporate bonds, according to the investigators.