I've checked with my relative in VT, I also read the Punlao webboard. Yes, it was true. Yes, it happened. He said that it could have been a cover-up from high ranking official(s) that's why it was not published in any news outlets. (no surprised)
Any news that had no firsthand account of the incident or the investigation is just mere gossip. So far, everything on Punlao or on this webboard can only be considered as hearsay.