Hutung Group Founder Chen Wu-hsiung's Loan Fraud Case: 4 Years 6 Months Imprisonment Finalized

(Central News Agency, Taipei, April 17) Chen Wu-hsiung, founder of Hutung Group, was involved in a loan fraud case of over NT$3.9 billion concerning Taiwan Youli chain gas stations. The second instance court sentenced him to 4 years and 6 months for violating banking laws and other offenses. After appealing to the third instance, the Supreme Court rejected the appeal yesterday, finalizing the verdict, and has notified prosecutors to initiate anti-escape mechanisms.

According to the second instance ruling by the Taiwan High Court, Chen Wu-hsiung had previously absconded abroad during another case, demonstrating a history of flight. Although he was apprehended and returned to serve his sentence in another case, he was granted medical parole due to health reasons and has remained on parole since.

The High Court judgment states that between 2010 and 2012, Chen Wu-hsiung indirectly controlled Youli Company through major shareholders of an oil company he controlled, and used Youli Company's name to defraud banks of NT$3.933 billion. The outstanding principal not repaid is NT$782,884,673, and he caused Youli Company to incur unnecessary interest and expenses.

According to the judgment, Chen Wu-hsiung also jointly violated duties with other defendants by providing NT$60 million of Hutung Company's subsidiary's assets as collateral for others, and concealed this collateral in financial reports for public disclosure to cover up his actions.

The High Court believed that Chen Wu-hsiung was at the core of the crime, possessing the ultimate highest decision-making authority, and his actions should be severely condemned. Considering his age, current health condition, economic status, and his denial of guilt during the investigation and original trial, as well as his previous failure to appear for summons and being sought for arrest, it was deemed that he showed no remorse. He was sentenced to 4 years and 6 months in October last year for the crime of defrauding banks under the Banking Act, with the proceeds of the crime exceeding NT$100 million.

After appealing to the third instance, the Supreme Court reviewed the case and found no errors in the second instance judgment, and the sentencing was appropriate. The appeal was rejected on the 16th, and the entire case is now finalized. (Editor: Hsieh Chun-lin/Li Hsi-chang) 1150417

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