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Vietnam court upholds ruling on 4.9 trillion dong fraud case

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Vietnam court upholds ruling on 4.9 trillion dong fraud case

A Vietnamese court upheld a ruling in a 4.9 trillion dong bank fraud case that holds the main perpetrator responsible for returning some of the stolen money, rather than the individual's employer at the time, Vietnam Joint Stock Commercial Bank for Industry & Trade, or Vietinbank, Reuters reported May 30.

The Ho Chi Minh City People's High Court upheld the ruling in the case, the biggest-ever fraud in Vietnam. Huynh Thi Huyen Nhu and 22 accomplices were convicted in 2014 for "misappropriation of funds." Nhu, formerly deputy chief of the bank's risk management department, was convicted of using falsified documents to embezzle funds deposited at the bank.

Josephine Yei, the CEO of one victim, depositor Saigonbank Berjaya Securities JSC, expressed disappointment over the ruling, saying that the decision will make it nearly impossible for her bank to recoup the US$10 million stolen from the company. Saigonbank Berjaya Securities is a unit of Malaysia-based conglomerate Berjaya Corp. Bhd.

In other economies, banks can be held liable for the embezzlement of depositors' funds if the bank's negligence is established. In Vietnam, the question of liability becomes more up for debate if the perpetrator goes beyond their responsibility, according to Nguyen Thanh Ha, chairman of Hanoi-based law firm SBLAW.

The case had been closely watched as more foreign banks look to invest in the country. Nguyen Thi Minh Huyen, a lawyer for Saigonbank Berjaya Securities, said foreign and domestic investors were watching the case to see how the legal framework is being implemented to protect depositors in Vietnam.

As of May 29, US$1 was equivalent to 22,834 Vietnamese dong.