Xian Zong Industry Chairman Defrauded Loans Exceeding 1.1 Billion; Second Trial Reduces Sentence to 12 Years

The male chairman and his wife of the well-known steel wire factory Xian Zong Industry were involved in defrauding loans exceeding NT$1.1 billion and defrauding upstream and downstream manufacturers by NT$293.59 million, totaling approximately NT$1.49 billion. The Qiaotou District Court sentenced the chairman, Mr. Wang, and his wife, Ms. Zhang, to 12 years and 4 months and 6 years and 10 months respectively for violating the Banking Law and other charges in the first instance. The Taiwan High Court Kaohsiung Branch Court announced its verdict today, reducing the sentences to 12 years and 6 years and 6 months respectively. The case is still appealable. The case originated when Xian Zong Industry Co., Ltd. was exposed for bankruptcy, work stoppage, and wage arrears in 2021. The 62-year-old chairman, Mr. Wang, was also suspected of defrauding banks of NT$1.19835 billion and defrauding upstream and downstream manufacturers of NT$293.59 million, totaling approximately NT$1.49 billion. The Qiaotou District Prosecutor's Office believed that Mr. Wang, his 62-year-old wife Ms. Zhang, and three company executives violated the Banking Law, engaged in business registration of false information, and violated the Firearms, Ammunition, and Knife Control Act, and thus prosecuted them. The special investigation team found that from September 2020, Mr. Wang and his wife Ms. Zhang defrauded upstream manufacturers of wire rods by falsely claiming they had surplus production capacity for contract manufacturing. They also defrauded banks of payments by falsely claiming they wanted to sell wire rods to downstream manufacturers at below-market prices. Unexpectedly, after obtaining the loan, Mr. Wang was still not satisfied. In December 2020, using a fake contract for plate coil transactions worth over NT$135 million, he applied for letters of credit loans from multiple banks. He then defrauded NT$1.19835 billion by offering discounts and submitting false commercial invoices, requesting loan disbursement. Upon receiving the report, investigators searched his residence and other locations, where they seized suspected firearms and ammunition. They later found at least 200 Hermès handbags and other luxury goods in Mr. Wang's residence and arrested Mr. Wang, summoning 8 other individuals. (Editor: Zhang Yajing) 1150416 Choose to stand with the facts, your every sponsorship is a force to protect press freedom. Download the CNA 'One News' APP to grasp the latest news in real time. The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization. Keywords: None