6 indicted over NT$5 billion investment scam targeting garment magnate

Taipei, June 16 (CNA) The Taipei District Prosecutors Office on Monday indicted six people for fraud and money laundering over an investment scam that allegedly defrauded late Taiya Group Chairman Shen Yu-hsiung (沈裕雄) of nearly NT$5 billion (US$169.3 million).

Leading the scheme was Lo Pei-wen (羅佩雯), who was charged alongside Cheng Chun-chun (鄭淳駿), Yang Kuo-lung (楊國隆), Hsieh Tsung-han (謝宗翰), Lo Wen-chieh (羅文傑) and Chan Yi-ling (詹依苓), prosecutors alleged.

Lo Pei-wen, Cheng and Hsieh were detained and held incommunicado during the investigation, and their cases will be transferred to the Taipei District Court, which will decide whether to extend custody, prosecutors said.

Lo had previously served time for fraud involving false claims of profits from plane ticket arbitrage between 2008 and 2011, obtaining parole in June 2014.

Facing financial problems by 2015, Lo made moves to revive her criminal activity, prosecutors said.

They said she convinced 10 people to invest more than NT$525 million, repaying early investors with high interest using funds from later investors.

After meeting Shen through Cheng, Lo allegedly defrauded the then chairman of the large clothing company out of more than NT$4.88 billion, and Cheng knowingly helped Lo illicitly receive money from Shen using his personal bank accounts, prosecutors charged.

In an separate scheme, prosecutors said Lo defrauded Shen of an additional NT$54.5 million and US$7.14 million between July 2022 and February 2023 by falsely claiming she could assist with immigration investments in countries such as the United Kingdom, Australia and Mexico.

Shen died in October 2023, and his family filed a complaint after repeatedly having trouble reconciling Shen's accounts.

Prosecutors said Lo transferred criminal proceeds to her ex-husband Hsieh Tsung-han, who used the funds to open a restaurant and buy property in Australia.

She also sent money to her brother Lo Wen-chieh and sister-in-law Chan Yi-ling under false loan agreements to fund restaurants and property purchases.

To claw some of the funds back, the Shilin Branch of the Administrative Enforcement Agency under the Ministry of Justice auctioned 130 luxury items seized from Lo, raising NT$21.41 million in two sales held in May and June.