Taiwanese version of "Infernal Affairs"! Deputy Director of Criminal Investigation Bureau indicted in 25 Telecom fraud case

Under the guise of legitimate business, the telecommunications company Erwo Telecom engaged in illegal activities. After more than a year of in-depth investigation by the Yunlin District Prosecutors Office, the investigation concluded today, July 5th. The company is accused of producing and providing "BlackBerry cards" and "Bit cards" to fraud syndicates, leading to the indictment of several high-ranking individuals, including former Deputy Director of the Criminal Investigation Bureau, Zhuang Dingkai.

Illegal Production of "Blackberry Cards" and "Bit Cards," Several Top Executives Indicted

While investigating cases of fraud, Prosecutor Huang Wei-Jie of the Yunlin District Prosecutor's Office uncovered illegal activities by the 25 Telecom Company. The company hired former NCC Commissioner Hsiao Chi-Hung and former Deputy Director of the Criminal Investigation Bureau Chuang Ding-Kai as consultants, both of whom violated the revolving door clause of the Civil Servant Service Act by using their connections to seek high-paying positions after leaving public office.

According to the prosecution's investigation report, the 25 Telecom Company established a fraud group in September 2021, responsible for illegal money laundering activities. The company set up 29 dummy companies domestically and internationally to apply for financial accounts and conduct money laundering operations. The company's owner, Mr. Chen, along with his family and friends, managed these dummy companies and fabricated false transaction records to conceal the illegal money flow.

Cryptocurrency Money Laundering Network

Mr. Chen collaborated with the accountant at the Chuang Accounting Firm, surnamed Chuang, and the head of a prominent exchange, Pan Yi-Chang, to convert illegal proceeds into the cryptocurrency USDT and deposit them into specified virtual wallet addresses. Additionally, Mr. Chen used the bank accounts of individuals like Gao to conduct layered transfers to conceal the illicit proceeds.

Consultants Facilitate Regulatory Evasion

To bypass bank deposits scrutiny, Pan Yi-Chang hired former Deputy Director of the Criminal Investigation Bureau Chuang Ding-Kai as a consultant and used Chuang's son to inquire about the deposited funds at the bank. They also signed a false project service contract to mislead the investigating authorities and remove the frozen funds from Pan's company.

Hiring Lawyers to Evade Investigation

Facing multiple criminal investigations, Mr. Chen hired a lawyer named Jiang from a law firm to handle legal matters related to drivers and dummy accounts. Mr. Jiang was responsible for providing preventive measures, dealing with police investigations, arranging legal defenses, and fabricating evidence to mislead the investigation.

Illegal Money Flow Reaches NT$400 Million

On March 11 of this year, the prosecution once again directed a search of the 25 Telecom Company, seizing over 2 million NT dollars in cash and over 60,000 USDT. From November 2021 to November 2023, the illicit money flow in the dummy companies' financial accounts of the company reached over 440 million NT dollars, while the USDT flow in the virtual wallet accounts reached over 720 million NT dollars. The prosecution will seek court approval to confiscate these illegal gains and has already seized the company's properties and land.