Disability care group executives indicted for embezzlement, fraud

Taipei, Aug. 11 (CNA) Three executives of the Taiwan Disability Care Association, including its director-general, were indicted Monday in Taipei on charges of embezzling NT$110 million (US$3.68 million) in public charitable donations, breach of trust, and bank loan fraud.

A man surnamed Hsiao (蕭) served as director-general of the association, established in 2011, until he became a wanted fugitive in a criminal case in 2021. His wife, surnamed Chen (陳), then took over the position, according to a press release from the Shilin District Prosecutors Office.

However, prosecutors said Hsiao continued to control the association's finances and assets together with Chen, under the false surname Huang (黃) while pretending to be an assistant at the association.

His sister was also listed as an executive director and participated in the association's fundraising activities, the prosecutors office said.

The three are accused of misappropriating public charitable donations from 2019 to March 2025 and transferring the funds to the accounts of their relatives for personal use such as buying real estate, payment of credit card bills and loan repayments.

The total embezzled reached NT$110 million, the office said.

Investigations revealed that between 2019 and April 2025, Hsiao and Chen promoted the association's charitable work through its website and hired the Taiwan branches of a Singaporean and a Malaysian company to conduct street advocacy and telemarketing campaigns to boost donations.

As a result, the association received NT$250 million in donations, but only about NT$10 million was used for basic operating expenses and public welfare projects, prosecutors said.

According to the prosecutors, between 2021 and 2025, the association paid the two companies NT$130 million -- 79 percent of its reported revenue -- exceeding the legal spending ratio for fundraising costs.

This meant that most donations were spent on fundraising marketing rather than on their intended charitable purposes, constituting a breach of trust.

Separately, in 2022 and 2023 Hsiao purchased two properties in Linkou District, New Taipei, under his sister's name, the prosecutors said.

He also transferred NT$2.1 million of association funds into her account, fabricated a fake salary record and issued false tax withholding statements, pretending she was an engineer at the association with an annual salary of NT$2.3 million.

Using these false documents, he fraudulently obtained NT$52.16 million in bank loans, the prosecutors said.

Despite being fully aware that the funds came from embezzled donations, his sister helped Hsiao conceal assets purchased with illicit funds and allowed him to register seven personal vehicles in her name, they added.

The district prosecutors office indicted Hsiao, Chen and the sister on charges including embezzlement of public interest funds, document forgery, fraud, breach of trust, money laundering and harboring a fugitive.

The three remain in custody and will be transferred to the Shilin District Court, which will decide whether to extend their detention.