Tzu Chi Foundation's failure to file a lawsuit after being defrauded of NT$1.06 billion has sparked outrage online: How did they manage to pass off their financial statements? | Lawyer Li Yusheng analyzes the due diligence obligations of foundations and charitable organizations regarding the safekeeping of charitable funds.

News Headline:Tzu Chi Foundation's failure to file a lawsuit after being defrauded of NT$1.06 billion has sparked outrage online: How did they manage to pass their financial statements? (Reported by Chien Pin-chieh, One News)

News link:https://youtu.be/cH7IuaFKkvg?si=y0YwELRawU2QJPwQ

Renowned female lawyer Chen Yu-hsuan is accused of colluding with a religious master to defraud the Tzu Chi Foundation of NT$1.06 billion under the guise of purchasing BNT vaccines. The controversy continues to escalate, with many netizens criticizing how this staggering NT$1 billion was accounted for in the financial statements. Experts have also raised questions, arguing that the failure to file a lawsuit immediately after the incident is unusual for a typical victim. In response, some lawyers have suggested that filing a civil suit attached to the criminal case now would allow them to request the court to order the return of all funds.

Attorney Li Yu-sheng of Fidelity Law Firm stated that Tzu Chi has complete legal channels to recover the NT$1.06 billion. The prosecution has already seized over NT$1 billion in gold, cash, real estate, and other proceeds of crime, sufficient to fully reimburse the losses. The fastest way is to file a civil suit attached to this criminal fraud case, avoiding a separate civil lawsuit, requesting the court to order the defendant to jointly return all funds. He advised hiring a lawyer now to simultaneously initiate criminal proceedings. Furthermore, as Tzu Chi is a charitable organization, it must also bear corresponding legal responsibility to the donors if there are any mismanagement issues in the use of charitable funds.