Former Shin Kong Life Insurance Co chairman Eugene Wu (吳東進) and several other company executives are being investigated for alleged embezzlement and fraud resulting in corporate financial losses of about NT$150 million (US$4.63 million), New Taipei City prosecutors said yesterday.
After being summoned to the New Taipei District Prosecutors’ Office for questioning, Wu was listed as among 17 suspects facing charges of aggravated breach of trust, embezzlement and breaches of the Insurance Act (保險法).
Wu was released on bail of NT$100 million yesterday.
Photo: Tien Yu-hua, Taipei Times
The case has received much attention with Eugene Wu being the eldest son of Wu Ho-su (吳火獅), who founded Shin Kong Group, one of the nation’s leading conglomerates.
Eugene Wu is the father of Cynthia Wu (吳欣盈), who was formerly a Shin Kong Life Insurance deputy general manager and a board member of Shin Kong Financial Holding Co. She entered politics as a legislator-at-large for the Taiwan People’s Party (TPP) and then became the party’s vice presidential candidate alongside TPP Chairman Ko Wen-je (柯文哲) in January’s election.
Prosecutors coordinated with the Financial Supervisory Commission (FSC) and the Ministry of Justice Investigation Bureau to search 18 locations on Tuesday, including business offices and Eugene Wu’s residence, and served summons to company executives and employees.
Prosecutors and FSC officials said they had received reports of financial irregularities, embezzlement and illegal transfers of company assets concerning the Jasper Villa Banciao residential complex in New Taipei City’s Banciao District (板橋).
The complex, built and operated by Shin Kong Life Insurance, is serviced apartments and retirement homes providing full amenities and hotel-like services which have also been promoted as long-stay vacation homes for wealthy Japanese retirees.
The NT$100 million bail bond is among the highest ever for a suspect in an economic crime case. Those released on NT$2 million bail included former Shin Kong Life Insurance general manager Tsai Hsiung-chu (蔡雄繼) and deputy head of the real-estate management division Lu Chi-yao (盧麒堯).
Those released on bail of NT$1 million were Shin Kong Life Insurance deputy general manager Chang Liang-tze (張良梓) and two other executives, Lu Ping-hsien (呂炳賢) and Lin Wei-chieh (林偉傑).
Shin Kong Life Insurance in 2016 won a bid for a valuable plot of land in Banciao District that became available due to CPC Corp, Taiwan relocating a petroleum storage facility.
The company constructed the Jasper Villa Banciao residential complex — three buildings, including a medical center with a nursing home, hotel units and serviced apartments, food and catering services, recreation facilities and a fitness center.
The FSC in 2022 fined Shin Kong Life Insurance NT$3 million, citing breaches of the Insurance Act, questionable transfers of company funds, and failing to comply with internal control and financial auditing procedures for real-estate developments.
The investigation found that company executives took advantage of “the same corporate team managing different sectors” by renting some of the serviced apartments to a subsidiary company directly controlled by Eugene Wu.
It also found that company executives took charge of many serviced apartment and hotel units without paying service and rental fees for vacations, entertainment events, and the granting of corporate perks to executives and guests of Shin Kong Group-affiliated entities.
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