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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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Frequently Asked Questions
Why do cases involving commercial accounting law and banking law often appear together?
If the case involves company financial statements, loan information, fund flows, or credit information to banks, the prosecution may also examine the authenticity of accounting documents and financial statements, as well as whether they involve banking laws or fraud.
What should a company be aware of when it is searched or summoned for questioning?
The search area, seized items, and key questions should be identified first. Internal company documents, contracts, correspondence, and financial records should be preserved. A lawyer should assist in assessing whether the case involves charges under the Commercial Accounting Act, Banking Act, or Breach of Trust.
Does falsifying financial statements always constitute a crime?
Not necessarily. It still depends on the nature of the false information, the intent behind it, its significance, whether it affects credit or investment decisions, and whether the company's responsible person was actually involved or aware of it.
Related topic groups and service portals
If you encounter legal issues similar to those described in this article, you typically need to consider contracts, financial transactions, records, company documents, and litigation risks simultaneously, rather than just looking at a single legal provision. Below is a summary of related topics and services offered by Fidelity Law Firm that can be further explored after reading this article.
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Frequently Asked Questions
Why should both accounting and criminal aspects be considered in commercial accounting law cases?
Because cases are usually judged based on evidence, ledgers, financial statements, cash flow, and the subjective perception of the person in charge, they cannot be judged by a single criminal charge.
What should the company's responsible person do after receiving a summons?
It is recommended to first organize the accounting books, vouchers, board or shareholder meeting information, accountant correspondence records, and internal company authorization processes, and then have a lawyer assess the investigation risks.
Does falsifying financial statements always involve the Securities Exchange Act?
Not necessarily. It depends on the company type, the entities that disclose information to, the impact on the financial statements, and whether it involves investors or market transactions.