Green energy company, 25 indicted over alleged investment fraud

Taipei, Oct. 5 (CNA) The Taipei District Prosecutors Office on Monday indicted Farxun E-commerce Co., Ltd. (華訊電能) and 25 people over an alleged fraudulent investment scheme that prosecutors said raised more than NT$219 million (US$6.89 million).

The company, its CEO, surnamed Hsieh (謝), and 24 others were charged with the offense of illegally accepting deposits from the public under the Banking Act, according to the indictment. Hsieh was also charged with aggravated fraud and money laundering, while the company's CFO, surnamed Wu (吳), was charged with money laundering.

The company's de facto person in charge, surnamed Chen (陳), could not be located during the investigation and has been placed on a wanted list, prosecutors said.

According to prosecutors, Farxun began soliciting investments in January 2024 through social media advertisements and investment briefings in Taipei, Taichung and Kaohsiung for a "FAFAGO Green Energy EV Charger" investment scheme.

The company allegedly told investors they could purchase an EV charger for NT$300,000 and receive a guaranteed minimum monthly return of NT$3,520, equivalent to an annual rate of return of 14.08 percent, prosecutors said.

The company also allegedly promised to buy back each charger for NT$210,000 after three years. Investors who chose to hold the chargers for longer periods were offered discounts under "buy two, get one" or "buy three, get two" schemes, prosecutors said.

Investors were not required to participate in site selection, installation or operation of the chargers, and their returns were not tied to revenue generated by individual chargers, prosecutors said.

Prosecutors alleged that the arrangement therefore amounted to soliciting funds from the public in exchange for promised high returns, rather than a genuine investment.

Hsieh and Chen knew that fewer than 200 chargers had been installed in 2024 but continued soliciting investments for more chargers than had been installed, prosecutors said.

They also continued to solicit funds despite knowing that revenue from the chargers was insufficient to cover the promised returns, prosecutors alleged.

After receiving the investment funds, the company failed to install the corresponding chargers and instead used part of the money to pay sales bonuses and returns or compensation to earlier investors, prosecutors said.

Prosecutors estimated that the company illegally obtained more than NT$219.19 million between January 2024 and January 2026.

They also alleged that Chen and Hsieh transferred part of the funds to affiliated companies and employees' and personal accounts in an attempt to conceal the proceeds and their source through multiple transfers and withdrawals.

The company was no longer able to pay the promised returns in April 2026, prompting investors who believed they had been defrauded to report the case to police, prosecutors said.

Prosecutors carried out searches and raids in June as part of the investigation.

They described Hsieh as a key figure in the scheme, alleging that he obtained large sums through sales bonuses and attempted to distance himself from Chen after discovering that the company's cash flow was insufficient to maintain the promised returns.

Hsieh has continued to deny wrongdoing despite the substantial losses suffered by investors, prosecutors said. They are seeking a prison sentence of more than 16 years for him.