Gang sets up shell companies to defraud over NT$100 million, Taipei police send 24 suspects for prosecution

TAIPEI (CNA) -- A telecommunication fraud and money laundering group, led by Mr. Su of the Bamboo Union gang, acquired 12 financially distressed companies, changed their legal representatives to straw men, and then applied for and resold corporate digital certificates and accounts for fraud and money laundering purposes, handling over NT$100 million. Taipei police have arrested and sent 24 suspects for prosecution.

The Taipei City Police Department's Criminal Investigation Division today issued a press release stating that it recently received a report from a victim of fraud. After continuous tracing of the money flow, they discovered that the fraudulent funds flowed into several company accounts, which raised suspicion, and thus expanded the investigation.

Investigations revealed that this telecommunication fraud and money laundering group was led by Mr. Su, a 40-something member of the Bamboo Union gang, with members spanning multiple counties and cities. Since September 2023 (ROC calendar 112), they successively acquired a total of 12 financially distressed enterprises; they also sought out economically disadvantaged individuals, purchasing their accounts for NT$1,000 to NT$2,000 to act as nominal representatives.

Subsequently, Mr. Su and others collaborated with accountants to change company legal representative registrations, and leased short-term physical offices and issued fake transaction contracts to create the illusion of normal company operations, thereby gaining the trust of banks and reducing their vigilance towards large, abnormal capital flows.

After successfully applying for and activating corporate digital certificates and other account functions, Mr. Su and the suspects then resold these shell companies to other downstream illegal groups for use in receiving remittances from victims of fake investment and fake police/prosecutor fraud, as well as subsequent money laundering crimes.

Police initially found over 31 victims in this case, with total financial losses exceeding NT$100 million; among them, a 60-year-old female homemaker surnamed Chuang in Hsinchu lost as much as NT$65 million due to fake police/prosecutor fraud, and another female homemaker surnamed Chao in Taipei also lost NT$48 million.

After long-term investigation, when the time was ripe, police launched several waves of search and arrest operations from December last year to March this year, successfully apprehending the main suspect Mr. Su, group cadres Mr. Chen and Mr. Yu, and multiple nominal representatives, totaling 24 suspects, for prosecution in Taipei and New Taipei cities.

At the same time, mobile phones, laptops, corporate registration documents, passbooks, and other evidence were seized, and over NT$22 million in bank deposits related to the case were frozen by court order.

After questioning, the entire case was transferred to the Taipei District Prosecutors Office for investigation on charges of fraud under the Criminal Code, Money Laundering Control Act, and Anti-Fraud Crime Hazard Prevention Act. Mr. Su, Mr. Chen, and Mr. Yu were approved for detention and solitary confinement by the court at the prosecutor's request.

Taipei City Criminal Investigation Division Commander Ting Ching stated that statistics from the 'Anti-Fraud Dashboard' in April this year show that Taipei handled a total of 1,540 fraud cases, with financial losses exceeding NT$804.7 million; among them, fake investment fraud accounted for 124 cases, with financial losses reaching over NT$256.86 million (approximately 32% of the total losses).

Ting Ching mentioned that recently, fraud groups often use the names of celebrities, financial experts, or artists to spread false advertisements through social platforms, directing people to 'fake investment websites' and 'fake investment applications (APPs),' luring them with high returns to remit, transfer, or hand over money in person, causing severe financial losses. He advises the public to follow legitimate channels and platforms for investments.

Taipei City Criminal Investigation Division reminds the public that providing personal or company accounts to others for use not only risks becoming an accomplice to crime but also damages one's credit. If suspicious circumstances are found, immediately dial the 165 anti-fraud hotline or 110 emergency line, and the police will strictly investigate and promptly handle all types of illegal cases. (Edited by Chang Ya-ching) 1150512

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