Fraudulent Claim of NT$1.06 Billion from Tzu Chi: Financial Director Admits Lack of Financial Expertise, Says He Followed Instructions

Chen Yuxuan, a former member of the Chiayi Bar Association, and members of the “Hudao” religious organization have been accused of defrauding the Tzu Chi Foundation of NT$1.06 billion in advisory fees. The alleged fraud occurred during Tzu Chi’s consideration of purchasing BNT vaccines. Recently, Chen Yuxuan, Li Shizong, Luo Wenfang, and others denied the criminal acts. The case has drawn attention due to its implications for financial integrity and accountability within religious and institutional frameworks.

On the 21st of this month, the Taichung District Court held a preparation hearing for the four core members, including Chen Yuxuan and Li Shizong. All four denied the criminal facts presented. Chen Yuxuan and others remain in court detention, while the alleged mastermind, Li Yiru, has fled to Hong Kong and is wanted. The legal proceedings highlight the complexities of institutional governance and the need for transparency in financial dealings.

A second hearing was held on the 29th, summoning Chen Yuhan, the financial director of Yu Da Company, Liu Qiaojun, an employee of Fangyu Law Firm, and Wu Yingying, who was previously identified as Chen Yuxuan’s assistant. Wu Yingying admitted to tax evasion and money laundering charges but clarified that she was not Chen Yuxuan’s assistant but rather her classmate. She stated that her father’s long-standing friendship with Li Shizong led her to assist with various tasks, though she was unaware of the full scope of the alleged fraud.

Chen Yuhan, the financial director, admitted to violating tax laws but denied charges of embezzlement and money laundering. He stated that he lacked financial expertise and merely followed instructions to record cash and gold transactions. Chen Yuhan emphasized that he did not necessarily assist in bringing cash into the vault, as he was directed by Chen Yuxuan and others on how to fill out the records. The judge specifically asked if he was aware of the “Big Brother 4E Project,” to which Chen Yuhan admitted its existence but claimed ignorance of the funds’ origin.

The “Big Brother 4E Project” was reportedly a plan proposed by Li Yiru to support his business, involving the allocation of NT$400 million. The case underscores the importance of accountability and the need for individuals in positions of financial responsibility to understand the ethical and legal implications of their actions. As Proverbs 11:1 reminds us, “The Lord detests dishonest scales, but honest weights are his delight.” Integrity in financial matters is essential for maintaining public trust and upholding justice.

Source: Read the original report (translated from Mandarin Chinese)