Taichung Bank chairman detained for allegedly embezzling NT$1 billion

Taipei, Feb. 25 (CNA) Taichung Commercial Bank Chairman Wang Kuei-fong (王貴鋒) was detained and held incommunicado Sunday on suspicion of misspending over NT$1 billion (US$31.6 million) in company funds on personal luxuries, including a central Taipei rental property and a private jet.

According to prosecutors, Wang used Taichung Bank assets in a range of transactions with Top Speed Leasing and Finance Co., a company owned by his friend, Chou Che-nan (周哲男), who was also detained and held incommunicado on Sunday.

In addition to renting multiple luxury cars, Wang allegedly used the bank's money to rent a Bombardier Challenger 350 private jet from Chou's company, which he used for private trips abroad with family and friends.

Wang is also suspected of using bank funds to rent and decorate a luxury property owned by Chou's company in Taipei's Zhonghsan District, which he used to hold private receptions, according to prosecutors.

From 2014 to 2018, Wang transferred varying sums of the bank's money to Chou's marketing company for unspecified "advertising fees," prosecutors said, adding that in total, he was believed to have misappropriated over NT$1 billion.

During a search in January, New Taipei prosecutors seized seven luxury cars and two motorcycles in connection with the investigation, and also brought Wang, Chou and Taichung Bank Insurance Broker Co. Chairwoman Lai Li-tzu (賴麗姿) in for questioning.

During an initial hearing, the New Taipei District Court set bail for the three suspects ranging from NT$3 million to NT$15 million. However, prosecutors appealed the decision, and on Feb. 23, the Taiwan High Court reversed the judgment and remanded it back to the lower court.

At a follow-up bail hearing on Sunday, the New Taipei District Court ordered Wang and Chou detained and held incommunicado, noting that both were suspected of serious violations of the Banking Act and the Securities and Exchange Act, who could try to flee the country, collude with others or destroy evidence.

The court set bail at NT$5 million for Lai -- who is suspected of crimes including breach of trust -- as well as setting restrictions on her place of residence and banning her from leaving the country.