7 indicted over NT$16 million investment scam

Taichung, Jan. 7 (CNA) Taichung prosecutors have charged seven individuals on suspicion of coaxing a woman into purchasing stocks with NT$16 million (US$488,986), as the investigation into the investment scam continues.

At a news conference on Tuesday, the Taichung Police Department's Criminal Investigation Corps said that the seven indicted suspects, along with five others still under investigation, had allegedly defrauded the woman out of NT$13.7 million in 2024.

The unit declined to disclose any information about the woman.

Chang Kai-chih (張凱智), deputy head of the Criminal Investigation Corps' eighth unit, said the case dates back to May 2024, when the woman saw a Facebook advertisement for a stock investment expert supposedly endorsed by Chang Kuo-wei (張國煒), founder of the Taiwan-based Starlux Airlines.

After adding the expert on instant messaging app LINE and downloading the designated investment app, the woman deposited NT$16 million over six separate face-to-face transactions.

In June and early July, the woman withdrew NT$2.3 million in "profits" after the app showed that the value of her investment had grown to NT$64 million, the police said.

However, when she attempted to withdraw all her earnings in early July, she was asked to pay another NT$6 million.

While she managed to reduce the requested amount by half, a friend intervened, warning her of the danger. The woman then alerted the police and realized she had fallen victim to a scam.

A money mule, a 20-year-old man surnamed Fang (方), was arrested when the woman met him in July, the police said.

At the scene, multiple pieces of evidence, including a forged ID card, deposit certificate, contracts, and his mobile phone, were seized, according to the police.

In addition to Fang, the Taichung police arrested 11 others associated with the scam between July and November, all of whom have been handed over to the Taichung District Prosecutors Office.

The police said the investigation was focused on offenses related to aggravated fraud, the Money Laundering Control Act, and the Organized Crime Prevention Act, among others.

The prosecutors indicted seven suspects in November, while the others were still under investigation, the police added.