Bank Chair Arrested for Allegedly Spending NT$1 Billion on Personal Expenses

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Taichung Commercial Bank chairman Wang Kuei-fong was detained and held incommunicado on suspicion of misappropriating more than NT$1 billion (US$31.69 million) in company funds for personal luxuries, including a rental property in central Taipei and a private jet.

Prosecutors revealed that Wang engaged in various transactions with Top Speed Leasing and Finance Co, a company owned by his friend Chou Che-nan, who was also detained and held incommunicado.

Among the alleged misuse of funds, Wang is accused of renting several luxury vehicles and a Bombardier Challenger 350 private jet from Chou’s company for private trips abroad with family and friends. He is also suspected of using bank funds to rent and decorate a luxury property in Taipei owned by Chou’s company for private receptions.

From 2014 to 2018, Wang transferred significant sums of the bank’s money to Chou’s marketing company for unspecified “advertising fees,” totaling more than NT$1 billion, according to prosecutors.

During a search conducted last month, New Taipei City prosecutors seized seven luxury vehicles and two motorcycles in connection with the investigation. Wang, Chou, and Taichung Bank Insurance Broker Co-chairwoman Lai Li-tzu were detained for questioning.

Initially, the New Taipei City District Court set bail between NT$3 million and NT$15 million for the three suspects. However, prosecutors appealed the decision, prompting the High Court to reverse it and send the case back to the lower court.

At a subsequent bail hearing, the New Taipei City District Court ordered the detention and incommunicado status for Wang and Chou due to the severity of the alleged breaches of the Banking Act and the Securities and Exchange Act. There were concerns they might flee the country, collude with others, or destroy evidence. Bail was set at NT$5 million for Lai, who faces charges including breach of trust. She is subject to residency restrictions and a travel ban.