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Nine prosecuted over suspected NT$1.7 billion, three-year scam

TAIPEI, Taiwan -- The Taipei District Prosecutors Office yesterday prosecuted nine suspected members of a fraud ring, which has allegedly defrauded victims out of more than NT$1.7 billion over the course of three years.

The nine were charged with fraud and violation of the Banking Act (銀行法),while two suspected ringleaders, surnamed Tien (田) and Yang (楊), were placed in custody, according to the prosecutors.

An estimated NT$26 million in illegal profit and two vehicles were seized by the police. The vehicles were auctioned off for NT$1.85 million and NT$940,00, with the proceeds set to be deposited in the treasury.

The prosecutors indicated that due to the staggering amount of illegal profits that remains undiscovered, the two ringleaders will be prosecuted to the furthest extant of the law, and will be held in custody until the completion of sentencing.

The fraud ring had been under investigation since October 2009 and had accumulated over NT$1.7 billion from over 1,155 victims over the past three years, according to the prosecutors.

For three years the fraud ring had taken advantage of the low interest rates pervading the markets to set up bogus investment schemes to attract victims hoping for higher returns, said the prosecutors.

The prosecutors also indicated that Tien had come in to confess on his own, in hopes of letting his coconspirators take the blame and shirk legal consequences; Tien's ruse was not successful, they said.

February 27, 2013    johnny.brian@
What is wrong here? The prosecutors allow these fraudsters to operate for three years, cheating 1,155 victims and took illegal gains of NT$1.7 billion, before they indicated Tien and Yang. Seems policemen involved here, but never take action until inside deal went bad or the money became so big enough for other people to share with....
March 1, 2013    Upwell@
Nobody be it the lawmakers nor law enforcement agencies like the police can help those who are blinded by greed become reckless, fail to use their common sense and be foolish. The ancient saying that when something is too good to be true it's not true. That remains a good advice even today. Here you have a group of crooks going around offering huge or abnormal returns or profits. That's has always been the incentive to persuade investors to not use their otherwise cautious attitude. Sun Tse the wise man of war says as a matter of warning - often what appears to be real is not necessarily real and vice versa. If we take out the greed , and if these investors simply be more contented with what they can earn with small time investments with established banks all the con men and crooks would not have thrive. While I want to sympathize with these investors who lost money, I wonder whether they are victims of their own doing. Let’s not blame the police too readily. The police are trying merely to pick up the pieces after the happenings. Cold comfort to these victims. I have been approached by these sort of get rich agents before. Cynical as I always will be I ask myself the same question - if there is great sum of money or profits to make, why pick on me after all they would have kept such opportunities to themselves. If you ask and answer this question to yourself honesty and be wary of greed, you will certainly not fall victim. Be wise like a serpent. There is no free lunch. Don't be the free lunch for others.
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