Ex-NCC commissioner indicted for work with company accused of fraud

Taipei, April 16 (CNA) A former member of the National Communications Commission (NCC) was indicted by Yunlin prosecutors Tuesday in connection with his work for a telecoms company accused of fraud.

Hsiao Chi-hung (蕭祈宏), who left the NCC in 2022, was indicted for violating revolving door prohibitions in the Public Functionary Service Act by working as a consultant for the company, called Tel25 Corp., the Yunlin District Prosecutors Office told CNA.

Hsiao was previously questioned and released on NT$500,000 (US$15,368) bail after prosecutors indicted Tel25 Corp.'s owner, surnamed Chen (陳), and 21 others in January on charges including money laundering and aggravated fraud.

In the underlying case, prosecutors allege that Tel25 Corp. used its legal business activities as a cover while collecting personal data on Taiwanese and foreign nationals to use in false Know Your Customer (KYC) authorizations.

It then used that information to sell prepaid "blackberry cards" with international roaming and internet services -- which are favored by criminal fraud rings because they are difficult to track -- earning over NT$600 million in illegal profits over three years, according to prosecutors.

In a press release Tuesday, the NCC said it was "shocked and disappointed" by the accusations against Hsiao, but would cooperate fully with prosecutors.

The commission noted that in an effort to combat fraud, it has worked with local telecom companies to block 8.24 million text messages, 18.84 million international calls to Taiwan and disconnected 1,566 telephone numbers between March 2023 and February of this year.