Zhang Gangwei has been indicted again! He is accused of defrauding banks of 3.5 billion yuan in loans related to unfinished construction projects. Lawyer Xu Wanwei explains the potential criminal liabilities related to violations of the Commercial Accounting Law and the Banking Law.

Chang Kang-wei has been indicted again! He is accused of defrauding banks of NT$3.5 billion in loans related to unfinished construction projects | TTV News reporter Tsai Chang-yu

News link:https://youtu.be/cYKFekfY1Ro?si=Wud1Jbgm80dO630B

Former Far Eastern Air Transport chairman Chang Kang-wei was sentenced to 14 years in prison for allegedly embezzling NT$3.5 billion from the company. Some of his convictions have been finalized and he is already serving his sentence. Now, he has been accused of fraudulently obtaining loans from banks. Prosecutors found that due to issues with fund allocation, Chang Kang-wei directed his company, Hua Fu Construction, to sell 15 plots of land in Tamsui to Ho Fung Tai through sham transactions in order to develop the Taipei Jun Tian Xia project and fraudulently obtain NT$3.5 billion in loans from banks. Of this amount, NT$500 million was misappropriated for his own use. The Taipei District Prosecutors Office today (5th) concluded its investigation and indicted him for violating the Banking Act.

Attorney Hsu Wan-wei of Fidelity Law Firm stated that Chang Kang-wei and others used NT$50 million in short-term funds to create the illusion of capital increases and verifications. After obtaining accountant approval, they immediately withdrew the funds, violating the Company Act's crime of falsely reporting capital and the Commercial Accounting Act's crime of making false records, which carries a penalty of up to five years imprisonment and a fine. Furthermore, through fraudulent land transactions, inflated valuations, and false construction plans, they fraudulently obtained NT$3.5 billion in loans from banks, constituting the Banking Act's crime of fraudulently obtaining credit and the Criminal Act's crime of fraud. Due to the large amount involved, this is considered a serious offense, carrying a maximum penalty of up to ten years imprisonment and a fine of NT$200 million. They also misappropriated over NT$500 million in project financing for personal and related company use, constituting crimes of breach of trust. If convicted, in addition to multiple charges, the illicit gains must be confiscated. Chang Kang-wei has previously served time in prison for the Far Eastern Air Transport embezzlement case, and this prior record may also affect sentencing in this case.

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