26 tied to Kaohsiung dental clinic chain indicted for financial crimes

Kaohsiung, Nov. 26 (CNA) Kaohsiung prosecutors on Wednesday indicted 26 suspects connected to a chain of dental clinics that made an estimated NT$1.6 billion (US$51 million) by hiring unlicensed dentists, defrauding the national health insurance system, evading taxes and laundering money.

According to the Kaohsiung District Prosecutors Office, the vast scale of financial crimes by the Abc Dental Group was uncovered while investigating claims that they employed unlicensed dentists.

Although the probe originally focused on four suspects who opened the group in 2016 -- two dentist brothers surnamed Hsieh (謝), their sister who managed the company's finances, and a male surnamed Chen (陳) who served as chief of operations -- it expanded as new evidence came to light.

In a news release issued Wednesday morning, Kaohsiung prosecutors said that from 2019 to 2023, the dental group employed 17 unlicensed dentists who filled cavities, cleaned and pulled teeth for over 30,000 patients.

The unlicensed dentists brought in NT$57.1 million in illegal profits for the company, including NT$46.95 million in reimbursements from the National Health Insurance (NHI) system, the indictment said.

Under the leadership of the Hsieh siblings, the company set multiple policies -- including paying dentists in cash, not reporting or giving receipts for cash payments for self-paid procedures, and having the company's central office handle all tax reporting -- aimed at evading taxes, prosecutors said.

Meanwhile, the dental group also used a range of methods to launder their illicit gains, such as cross shareholdings, setting up front companies to invest in funds and currencies, and purchasing six real estate properties and renting them out to the group's dental clinics, prosecutors said.

Upon discovering the criminal activity, prosecutors conducted raids in August and December of last year, recovering NT$35.54 million that the suspects agreed to pay back, and seizing NT$7.7 million from front companies and six properties valued at over NT$532 million.

In total, prosecutors said they had petitioned to seize NT$1.695 billion in funds that Abc Dental Group, together with its accounting office, illicitly made via money laundering, tax evasion and defrauding the NHI.

Of the 26 suspects charged with fraud, money laundering and other crimes, 17 were granted bail of NT$200,000 to NT$10 million, seven were ordered released upon repaying their illicit gains, and two others were released without bail.