Biotech Company Chairman Suspected of $130M Loan Fraud; Management Executive Bailed for $500K

(CNA Correspondent Hsieh Chun-lin, Taipei, 22nd) The Taipei District Prosecutors Office is investigating a biotech company for allegedly conducting fake capital increases to fraudulently obtain bank loans and illegally trading stocks. Yesterday, a second wave of searches and interviews was launched. After questioning by the prosecutor, a Management Department Executive surnamed Wang was released on NT$500,000 bail and restricted from changing residence, leaving the country, or going to sea.

In addition, stock affairs personnel surnamed Lin and Wu were both released on NT$100,000 bail with the same restrictions. An accountant surnamed Chiu was sent back.

According to the investigation, the chairman of a biotech company, surnamed Lin, and his spouse, surnamed Hsu, allegedly falsely increased the capital of a subsidiary to NT$120 million between 2019 and 2021. They then engaged in fake transactions with another company controlled by Lin to inflate revenue, thereby defrauding several banks of over NT$130 million in loans.

Investigators also found that between 2020 and 2021, Lin and others allegedly used a "print stock, exchange for cash" scheme, selling unlisted stocks of their subsidiary to investors through underground brokerage information companies, amassing over NT$400 million.

On March 10, the Taipei District Prosecutors Office directed the Ministry of Justice Investigation Bureau's Taipei City Field Division to search the residences of Lin, Hsu, and a cooperating company head surnamed Yu, as well as 6 locations related to Lin's biotech company. The four individuals, including an accountant surnamed Chiu, were summoned for questioning.

After questioning, the prosecutor successfully petitioned the court to detain Lin incommunicado. Hsu and Yu were both released on NT$500,000 bail and restricted from leaving their residence or the country. Chiu was also restricted from leaving the country.

Continuing the investigation, prosecutors launched a second wave of searches yesterday, directing the Taipei City Field Division with court-issued warrants to search the residences of the accomplices—Wang (management executive), Lin, and Wu (stock affairs)—and 4 locations at the biotech company. The four defendants were summoned to explain the case. The investigation is proceeding under suspicions of violating the Banking Act for defrauding banks and the Securities and Exchange Act for fraudulent trading of securities. (Editor: Chang Ming-kun) 1150422

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