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Suspects detained over alleged involvement in financial fraud

2019/11/08 14:56:44

Pixabay image for illustrative purpose only

Taipei, Nov. 8 (CNA) The Taipei District Court approved Friday a request by prosecutors to detain 10 suspects for alleged involvement in an illegal financial fraud scheme that has raked in billions of Taiwan dollars.

According to the Taipei District Prosecutors Office, the suspects are members of the investment firm Financial.org, which has been in operation in Taiwan since June 2017.

The company's modus operandi was to entice investors through an investment scheme in which they were promised high returns through profits generated by stock markets in the United States.

According to prosecutors, the company raked in an estimated NT$3 billion (US$98.08 million) in commissions.

A court issue has been ordered to have the 10 people detained for suspected violation of the Banking Act, prosecutors added.

Based on regulations governed by the Act, financial schemes that promise unrealistically high returns are deemed illegal and classified as serious economic crime.

According to the Taipei office, a total of 19 people were summoned for questioning by the Criminal Investigation Bureau (CIB) Thursday, and 10 have since been detained pending further investigation.

According to a Reuters report published Sept. 7, Financial.org is an unregulated British firm that ceased operations in September this year.

The company is said to have managed hundreds of thousands of U.S. dollars for Asian investors, despite regulators noting that it was not licensed to engage in such financial services, the report said.

According to Reuters, financial watchdogs in Britain, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and the United Arab Emirates placed the company on an alert list of unauthorized investment firms with whom investors should exercise caution.

(By Lin Chang-shun and Ko Lin)
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