Ex-insurance executive detained in NT$50 million investment fraud

Taipei, March 7 (CNA) Taipei District Court on Saturday approved prosecutors' request to detain a former insurance firm executive accused of selling investment products and pocketing more than NT$50 million (US$1.58 million) incommunicado.

The suspect, surnamed Chen (陳), is alleged to have defrauded four individuals out of over NT$50 million by posing as a life insurance agent selling "premium trust certificates" by promising annual returns of 6-12 percent beginning in 2004, according to prosecutors.

• Prosecutors seek detention of retired insurance firm manager over alleged fraud

Chen was summoned to the Taipei District Prosecutors Office for questioning on Friday, following a search at her Taipei residence earlier that day by prosecutors and agents from the Ministry of Justice's Investigation Bureau, prosecutors said.

After questioning, Chen was placed under arrest. Although she contested the legality of her arrest, the court dismissed her petition at an overnight hearing before approving a motion by prosecutors to detain her without visitation on Saturday.

The alleged fraud came to light last year when her clients were unable to receive returns on their investments, prompting them to report the case to the authorities, prosecutors said.