Chen Ching-nan Given Heftier Sentence in Appeals Trial of Loan Fraud Case

Chen Ching-nan Given Heftier Sentence in Appeals Trial of Loan Fraud Case

Source: UDN

July 30, 2020

Chen Ching-nan, president of the Ching Fu Group, won the government contract for the construction and operation of the National Museum of Marine Science & Technology in Keelung when he was the principal of Ching Yang Aqua Marine Enterprise Co., LTD, and was indicted on charges of securing bank loans three times through fraudulent means by misrepresenting the progress of the construction project.

In the first instance trial, the court determined that Chen fraudulently obtained loans of NT$239.3 million, and Chen was sentenced to six years and ten months in prison for profiting through fraud and other offenses. However, the collegiate bench of the Taiwan Provincial High Court, Kaohsiung Branch believed that in the first instance trial, the amount of the loans fraudulently obtained was determined to be NT$239.3 million, which deducted the amount of the loans for which Ching Yang in fact completed part of the work, but this approach of loan application itself violated the syndicated loan contract. The court went on to say that generally speaking the formula of calculating the criminal gains would not deduct the costs, thus it determined that the entire sum of the actual extension of credit amounting to NT$338 million was all gains from fraudulent loans.

The Taiwan Provincial High Court, Kaohsiung Branch yesterday vacated the lower court’s ruling, sentencing Chen to seven years and ten months in prison instead, while raising the penalty to NT$30 million on Ching Yang. The ruling may be appealed.

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