{"id":3666,"date":"2023-06-12T21:29:40","date_gmt":"2023-06-12T13:29:40","guid":{"rendered":"https:\/\/fdlaw.com.tw\/?p=3666"},"modified":"2026-10-24T00:18:15","modified_gmt":"2026-10-23T16:18:15","slug":"financial-statement-fraud","status":"publish","type":"post","link":"https:\/\/fdlaw.com.tw\/en\/blog\/financial-statement-fraud\/","title":{"rendered":"Lawyer Li Yusheng, the chairman of Zhaojin Technology, which &quot;raised hundreds of millions of dollars in revenue,&quot; posted an 8 million bail, explained legal issues related to securities trading laws and false financial reports."},"content":{"rendered":"<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Zhaojin Technology &quot;Injects Revenue of over 100 Million&quot; and Chairman Posts 8 Million Guarantee | China Television News 20230527\" width=\"1290\" height=\"726\" src=\"https:\/\/www.youtube.com\/embed\/0kEe4zEfZBA?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n\n\n<style id=\"fdlaw-blog-polish-style-financial-statement-fraud-20260706\">\nbody.postid-3666 .entry-content{--fdlaw-ink:#27313b;--fdlaw-muted:#5f6d7a;--fdlaw-blue:#1f5f8b;--fdlaw-line:#d9e5ee;}\nbody.postid-3666 .entry-content p{line-height:1.9;color:var(--fdlaw-ink);font-size:17px;margin-bottom:1.15em;}\nbody.postid-3666 .entry-content h2.wp-block-heading{margin-top:2.15em;margin-bottom:.75em;padding:0 0 .45em .75em;border-left:5px solid #1f5f8b;border-bottom:1px solid #d9e5ee;color:#17384f;font-size:1.55em;line-height:1.35;}\nbody.postid-3666 .entry-content h3.wp-block-heading{margin-top:1.6em;margin-bottom:.65em;color:#24485f;font-size:1.18em;line-height:1.45;}\nbody.postid-3666 .entry-content a{color:#1f5f8b;text-decoration-thickness:1px;text-underline-offset:3px;font-weight:600;}\nbody.postid-3666 .fdlaw-summary-card,body.postid-3666 .fdlaw-faq-block{margin:1.6em 0 2.1em;padding:1.35em 1.45em;border:1px solid #d9e5ee;border-left:5px solid #1f5f8b;border-radius:8px;background:#f7fbff;box-shadow:0 8px 22px rgba(30,78,112,.08);}\nbody.postid-3666 .fdlaw-summary-card h2,body.postid-3666 .fdlaw-faq-block h2{margin:0 0 .75em;padding:0;border:0;color:#17384f;font-size:1.32em;line-height:1.35;}\nbody.postid-3666 .fdlaw-summary-card ul{margin:.2em 0 0 1.2em;padding:0;}\nbody.postid-3666 .fdlaw-summary-card li{margin:.55em 0;line-height:1.75;color:#31404c;font-size:16.5px;}\nbody.postid-3666 .fdlaw-summary-card strong,body.postid-3666 .fdlaw-faq-block strong{color:#163f5d;}\nbody.postid-3666 .fdlaw-faq-block h3{margin:1em 0 .35em;color:#24485f;font-size:1.08em;line-height:1.45;}\nbody.postid-3666 .fdlaw-faq-block p{background:#fff;border:1px solid #e3ebf2;border-radius:6px;padding:1em 1.1em;margin:.35em 0 1em;}\nbody.postid-3666 .entry-content h3.wp-block-heading + p{background:#fbfdff;border:1px solid #e3ebf2;border-radius:6px;padding:1em 1.1em;}\nbody.postid-3666 .entry-content p:has(a[href*=\"line.me\"]),body.postid-3666 .entry-content p:has(a[href^=\"tel:\"]){background:#fff8ec;border:1px solid #f0d8ae;border-radius:8px;padding:1em 1.15em;font-weight:600;}\n@media (max-width:768px){body.postid-3666 .entry-content p{font-size:16px;}body.postid-3666 .entry-content h2.wp-block-heading{font-size:1.35em;}body.postid-3666 .fdlaw-summary-card,body.postid-3666 .fdlaw-faq-block{padding:1.15em 1.05em;}}\n<\/style>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><strong>Zhaojin Technology &quot;Injects Revenue of 100 Million&quot; and Chairman Posts 8 Million Bail\uff5cChina TV News Reporter Zheng Huiliang<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">News link:<a href=\"https:\/\/youtu.be\/0kEe4zEfZBA\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/youtu.be\/0kEe4zEfZBA<\/a><br>Interviewed lawyer:<a href=\"https:\/\/fdlaw.com.tw\/en\/team\/charles-lee\/\">Lawyer Li Yusheng<\/a><br>Legal issues: False financial statements, securities trading law and related criminal liability<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Zhaojin Technology, a major listed network technology company that once won the &quot;National Quality Award&quot;, was revealed to have senior executives using the company to create fake transactions! The prosecutors are investigating Chairman Ji of Zhaojin Technology. From 2018 to 2020, he was suspected of inflating revenue by hundreds of millions of yuan in financial reports to beautify revenue. The prosecutors launched a search yesterday (26th) and interviewed the chairman and Among the 16 relevant personnel, the director surnamed Ji finally paid bail for NT$8 million, and the former director surnamed Yang of Zhaojin Technology&#039;s predecessor &quot;Youwang Technology&quot; paid bail for NT$2 million. Zhaojin also issued a major announcement stating that all operations will be carried out in accordance with Comply with relevant regulations.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The old god sitting on the chair is sitting in the Taipei Prefectural Inspection Bureau. He is Chairman Ji of Zhaojin Technology. He was arrested by the Taipei Prefectural Inspection Bureau on the evening of the 26th because he was suspected of using fake transactions to embellish revenue and falsely paid more than hundreds of millions of dollars. After being interviewed and interrogated by the department, a total of 8 million bail was paid. Not only the chairman surnamed Ji, but also the company manager, associate manager, and relevant supervisors were all interrogated. The investigation was conducted to investigate Zhaojin Company\u2019s suspected involvement with the management team from 2018 to 2020. Or related companies, they conducted fake transactions with multiple domestic and overseas subsidiaries and related companies, failed to calculate according to the financial system regulations, inflated revenue by hundreds of millions of yuan, but concealed transaction information with related parties, violating the &quot;Securities and Exchange Act&quot; The company&#039;s financial reports were false and there were also accusations of &quot;irregular transactions&quot;.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Chairman of Zhaojin Technology said: &quot;We are committed to better technology application and production and manufacturing to bring people a better technological life. Thank you all.&quot; We only talked about the company&#039;s philosophy at the corporate briefing a few years ago, but in fact this This is not the first time that it has been in the news. According to our understanding, Zhaojin Technology was formerly known as Youwang Technology. The semiconductor business and memory business are its main businesses. It also won the &quot;National Quality Award&quot;, but it was postponed a few months ago. The 4th quarter consolidated financial report was input to the Public Information Observatory, and the stock exchange fined it 30,000 yuan for violating regulations. Now it has been revealed that the company was trading falsely to gain profits from it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Securities and Exchange Law and Legal Explanation on False Financial Reporting<\/h2>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Attorney Li Yusheng stated, &quot;If the financial or property gains obtained through a crime exceed NT$100 million, the perpetrator will be sentenced to at least seven years in prison, with a maximum penalty of a fine of NT$500 million.&quot; Regarding the company&#039;s search, in addition to the chairman surnamed Ji being released on bail of NT$8 million, the other four individuals were also released on bail ranging from NT$500,000 to NT$2 million. Zhaojin issued a statement indicating that all operations were conducted in accordance with relevant regulations and that they are fully cooperating with the investigation. Whether there was any falsification of financial statements still awaits clarification from the investigators. Further investigation will be conducted through a detailed examination of each shipment, acceptance, and payment source.<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/listed-company-sham-circular-transactions-defense\/\">Complete defense of fake transactions, circular transactions, and inflated revenue<\/a>For an analysis of original transactions, revenue recognition, and personnel liability, please refer to [reference needed].<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/listed-company-financial-statement-fraud-defense\/\">Defending Listed Companies Against Inaccurate Financial Reports and Fake Transactions: A Complete Guide to Commercial Accounting Law<\/a>For further information regarding individual positions, knowledge of information, and signatures, please refer to [link\/reference needed].<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/cfo-accounting-officer-financial-statement-criminal-liability\/\">The responsibilities of the chief financial officer, accounting supervisor, and financial statement signing and sealing<\/a>Further details on the elements of various crimes can be found in the attached document.<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/securities-law-major-crimes-defense\/\">Defense against financial statement misrepresentation and other major securities trading law offenses<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-qubely-image qubely-block-546f65\"><div class=\"qubely-block-image  qubely-image-layout-simple\"><div class=\"qubely-image-media qubely-vertical-alignment-center qubely-horizontal-alignment-center\"><figure><div class=\"qubely-image-container\"><a href=\"https:\/\/fdlaw.com.tw\/en\/criminal\/\"><img decoding=\"async\" class=\"qubely-image-image\" src=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/04\/\u53f0\u5317\u5211\u4e8b\u5f8b\u5e2b\u53f0\u5317\u5211\u4e8b\u8a34\u8a1f\u5f8b\u5e2b\u63a8\u85a6.jpg\" alt=\"\u5211\u4e8b\u8a34\u8a1f\u5f8b\u5e2b,\u53f0\u5317\u6cd5\u5f8b\u8aee\u8a62\" title=\"\"><\/a><\/div><\/figure><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Taipei legal consultation lawyer recommendation<\/h2>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Fidelity Law Firm is located in Da&#039;an District, Taipei City. It specializes in business, investment, civil litigation and criminal litigation. Based on 20 years of professional lawyer experience, it provides professional Taipei legal consulting services, as well as commercial civil litigation and criminal litigation. If you have any legal If you have any questions, you can contact our firm, and our firm will provide legal consulting services from senior lawyers in relevant fields.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Fuda Law Firm<br>Line\uff1a<a href=\"https:\/\/line.me\/ti\/p\/@fdlaw\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/line.me\/ti\/p\/@fdlaw<\/a><br>Tel:<a href=\"tel:0277093611\" target=\"_blank\" rel=\"noreferrer noopener\">0277093611<\/a><br>Facebook:<a href=\"https:\/\/www.facebook.com\/fudalawyer\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.facebook.com\/fudalawyer<\/a><br>website:<a href=\"https:\/\/fdlaw.com.tw\/en\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/fdlaw.com.tw\/<\/a><br>e-mail:<a href=\"mailto:info@fdlaw.com.tw\" target=\"_blank\" rel=\"noreferrer noopener\">info@fdlaw.com.tw<\/a><\/p>\n\n\n\n<div class=\"wp-block-group fdlaw-faq-block is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">What legal liabilities might arise from falsified financial statements?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Inaccurate financial statements may involve violations of the Securities and Exchange Act, the Commercial Accounting Act, forgery, breach of trust, or liability of company officials. It depends on whether the company is listed on the stock exchange, whether the information is material, and whether the person acted intentionally.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What should a company prepare if its executives are accused of failing to provide timely financial reports?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The financial statements, accounting vouchers, board minutes, approval processes, correspondence with accountants, announcements, and transaction background should be compiled, and then a lawyer should assess the defense strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why is it necessary to have a lawyer familiar with accounting in cases of financial statement misrepresentation?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Because cases often involve accounting treatment, revenue recognition, financial statements, corporate governance and securities regulations, lawyers who are familiar with business and accounting practices are better able to accurately analyze the points of contention.<\/p>\n<\/div>\n\n\n\n<script id=\"fdlaw-generated-faq-schema-financial-statement-fraud-20260706\" type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"\u8ca1\u5831\u4e0d\u5be6\u53ef\u80fd\u6d89\u53ca\u54ea\u4e9b\u6cd5\u5f8b\u8cac\u4efb\uff1f\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\u8ca1\u5831\u4e0d\u5be6\u53ef\u80fd\u6d89\u53ca\u8b49\u5238\u4ea4\u6613\u6cd5\u3001\u5546\u696d\u6703\u8a08\u6cd5\u3001\u507d\u9020\u6587\u66f8\u3001\u80cc\u4fe1\u6216\u516c\u53f8\u8ca0\u8cac\u4eba\u8cac\u4efb\uff0c\u9700\u770b\u516c\u53f8\u662f\u5426\u4e0a\u5e02\u6ac3\u3001\u8cc7\u8a0a\u662f\u5426\u91cd\u5927\u53ca\u4e3b\u89c0\u6545\u610f\u3002\"}},{\"@type\":\"Question\",\"name\":\"\u516c\u53f8\u8ca0\u8cac\u4eba\u88ab\u63a7\u8ca1\u5831\u4e0d\u5be6\u6642\u8981\u6e96\u5099\u4ec0\u9ebc\uff1f\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\u61c9\u6574\u7406\u8ca1\u52d9\u5831\u8868\u3001\u6703\u8a08\u6191\u8b49\u3001\u8463\u4e8b\u6703\u7d00\u9304\u3001\u7c3d\u6838\u6d41\u7a0b\u3001\u6703\u8a08\u5e2b\u5f80\u4f86\u3001\u516c\u544a\u8cc7\u6599\u8207\u4ea4\u6613\u80cc\u666f\uff0c\u518d\u7531\u5f8b\u5e2b\u8a55\u4f30\u8faf\u8b77\u65b9\u5411\u3002\"}},{\"@type\":\"Question\",\"name\":\"\u8ca1\u5831\u4e0d\u5be6\u6848\u4ef6\u70ba\u4ec0\u9ebc\u9700\u8981\u719f\u6089\u6703\u8a08\u7684\u5f8b\u5e2b\uff1f\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\u56e0\u6848\u4ef6\u5e38\u6d89\u53ca\u6703\u8a08\u8655\u7406\u3001\u6536\u5165\u8a8d\u5217\u3001\u8ca1\u52d9\u5831\u8868\u3001\u516c\u53f8\u6cbb\u7406\u8207\u8b49\u5238\u6cd5\u898f\uff0c\u5f8b\u5e2b\u82e5\u719f\u6089\u5546\u52d9\u8207\u6703\u8a08\u5be6\u52d9\uff0c\u8f03\u80fd\u7cbe\u6e96\u5206\u6790\u722d\u9ede\u3002\"}}]}<\/script>","protected":false},"excerpt":{"rendered":"<p>Zhaojin Technology &quot;Inflated Revenue by Hundreds of Millions&quot; Chairman Released on Bail of NT$8 Million | CTS News Reporter Zheng Huiliang News Link: https:\/\/youtu.b [\u2026]<\/p>","protected":false},"author":1,"featured_media":4011,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","footnotes":""},"categories":[119],"tags":[38,37,120,50,311],"class_list":["post-3666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-38","tag-37","tag-120","tag-50","tag-311"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"qubely_featured_image_url":{"full":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840.jpg",1697,966,false],"landscape":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-1200x750.jpg",1200,750,true],"portraits":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-540x320.jpg",540,320,true],"thumbnail":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-150x150.jpg",150,150,true],"medium":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-300x171.jpg",300,171,true],"medium_large":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-768x437.jpg",768,437,true],"large":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-1024x583.jpg",1024,583,true],"1536x1536":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-1536x874.jpg",1536,874,true],"2048x2048":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840.jpg",1697,966,false],"trp-custom-language-flag":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840.jpg",18,10,false],"qubely_landscape":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-1200x750.jpg",1200,750,true],"qubely_portrait":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-540x320.jpg",540,320,true],"qubely_thumbnail":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2023\/06\/S__18038840-140x100.jpg",140,100,true]},"qubely_author":{"display_name":"\u53f0\u5317\u5f8b\u5e2b\u63a8\u85a6","author_link":"https:\/\/fdlaw.com.tw\/en\/author\/admin\/"},"qubely_comment":0,"qubely_category":"<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/category\/news\/\" rel=\"category tag\">\u5a92\u9ad4\u5831\u5c0e<\/a>","qubely_excerpt":"\u5146\u52c1\u79d1\u6280\u300c\u704c\u6c34\u4e0a\u5104\u71df\u6536\u300d\u3000\u8463\u4e8b\u9577800\u842c\u4ea4\u4fdd\uff5c\u83ef\u8996\u65b0\u805e \u8a18\u8005 \u912d\u5349\u826f \u65b0\u805e\u9023\u7d50\uff1ahttps:\/\/youtu.b&hellip;","_links":{"self":[{"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/posts\/3666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/comments?post=3666"}],"version-history":[{"count":13,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/posts\/3666\/revisions"}],"predecessor-version":[{"id":12913,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/posts\/3666\/revisions\/12913"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/media\/4011"}],"wp:attachment":[{"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/media?parent=3666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/categories?post=3666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/tags?post=3666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}