Prosecutors seek detention of retired insurance firm manager over alleged fraud

Taipei, March 7 (CNA) Taiwan's prosecutors have sought a court permit to detain a retired insurance firm manager and hold her incommunicado over her alleged involvement in selling problematic trust certificates and reaping more than NT$50 million (US$1.58 million) in profit over two decades.

The Taipei District Prosecutors Office said on Friday night that the retired manager, surnamed Chen (陳), allegedly solicited the massive funds from 2004 to 2025 when she worked for a leading Taiwan-based life insurance company, through the sale of the trust certificates she touted as "good quality" to four of her clients.

According to prosecutors, Chen had guaranteed her clients they would receive 6-12 percent a year in interest on trust certificate investments.

Last year, however, her clients realized they had been defrauded because they were unable to receive any returns or get their money back.

After receiving a report about the alleged fraud from the victims, prosecutors launched a raid on Chen's residence and arrested her after questioning her on Friday.

Chen filed a petition with the Taipei District Court seeking a hearing on whether her arrest was lawful under the Habeas Corpus Act, but the court rejected her request on Friday night.

Soon after the court's rejection, prosecutors filed a request with the court to detain Chen.

Prosecutors said they are launching an investigation into the case for fraud under the Criminal Code and violation of the Banking Act.

CNA did not disclose the name of the life insurance company Chen had worked for since the case remains under investigation.