Chen Shui-bian Gets 18-Year Prison Term in Second-Phase Financial Reform Case

 Chen Shui-bian Gets 18-Year Prison Term in Second-Phase Financial Reform Case

                      Source: Taipei newspapers         October 14, 2011

The Taiwan Provincial High Court, the appellate court, yesterday handed down its ruling in the trial of the Second-Phase Financial Reform scandal case involving the then Chen Shui-bian administration, his family, and several top bank executives. 

Former President Chen Shui-bian and his wife, Wu Shu-jen, were found guilty on charges of receiving bribes and money-laundering by the appellate court.

The High Court collegiate bench overturned the lower court’s acquittal ruling as the High Court judges concluded in the written ruling that Chen and Wu had taken a total of NT$ 500 million in bribes from the Cathay Financial Holdings and Yuanta Financial Holding, and utilized their positions and influence to intervene in the mergers and acquisitions of several financial holdings corporations under his Presidency.  

In December 2009, the Special Investigation Unit (SIU) under the Prosecutor-General’s Office concluded after investigation that Chen Shui-bian and Wu Shu-jen had taken a total NT$ 610 million in bribes and engaged in money-laundering during the Second-Phase Financial Reform under Chen’s Presidency. The SIU then indicted a total of 21 people, including former President Chen Shui-bian and his wife, Wu Shu-jen.  

However, in November 2010, the Taipei District Court, the court of first instance, acquitted Chen, Wu and the 19 other defendants on the grounds that the President’s functions and authority were enumerated in the Constitution, and did not include overseeing financial reforms, so the money the Chen Shui-bian family received from banks was political contributions.  

The SIU then appealed the Taipei District Court’s ruling to the High Court. The prosecutors did not appeal the acquittal ruling of Michael Ma, Yuanta Financial Holding Co. chief operating officer, on the grounds that no further evidence had been found to prove that he was involved in the case. So, Ma’s acquittal became final.     

Nine people were found guilty by the High Court in the trial of the Second-Phase Financial Reform scandal case. Chen Shui-bian was sentenced to 18 years in prison and deprived of political rights for nine years with a fine of NT$ 180 million, while his wife, Wu Shu-jen, was given an 11-year prison term and was deprived of political rights for eight years with a fine of NT$ 102 million.

Ma Yung-cheng, former deputy secretary general under then President Chen Shui-bian, was found guilty on charges of corruption as a co-defendant in the case for helping Chen Shui-bian receive bribes. He was sentenced to eight years in prison and was deprived of political rights for six years.  

Wu Ching-mao, Wu Shui-jen’s brother, and his wife Chen Chun-ying, were acquitted as they were defendants-turned-witness for the prosecution. In addition, Chen Chih-chung (Chen Shui-bian’s son), and his wife Huang Jui-ching, were given a one-year and a six-month prison terms, respectively, on charges of money-laundering as the collegiate bench concluded that the couple had wired the illicit gains to their bank account in the US in order to buy real estate there.

Among the top bank executives indicted in the case, Victor Ma, former Yuanta Financial Holding president and Tu Li-ping , former Yuanta Securities board director, were found guilty on charges of money-laundering and were given 8-month and 3-month prison terms, respectively, but their sentences were suspended for two years.

However, the appellate court upheld the lower court’s acquittal ruling on Tsai Chen-yu, deputy chairman of Cathay Financial Holdings; Angelo Koo, former president of China Development Financial Holding Co.; and Cheng Shen-chih, former chairman of Mega International Commercial bank.

The collegiate bench wrote in the written ruling that Chen Shui-bian, who had served as ROC President for two terms, should have served as a model for all people, fulfilled his duty as a President faithfully, and enhanced the welfare of all people, but he had traded his power for money and utilized his position to seek his own benefits; furthermore, he had done everything he could to shirk responsibility and shown no remorse during the investigation and the trial. He reneged on the oath he had taken when sworn into office, so he should be given the severest punishment under the law, added the collegiate bench.        

In addition, the collegiate bench wrote in the written ruling that former First Lady Wu Shu-jen should have assisted the President and participated in charitable activities for the benefit of the people, but she had chosen to fraternize with entrepreneurs, manipulating her power and crossing the line to take money from enterprises. The Presidential residence had become a “financial trading center” as well-connected businessmen frequented the place one after the other to pay tribute to her with cash, added the collegiate bench in the written ruling.  

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