Former Far Eastern Air Transport Chairman Chang Kang-wei Indicted for Fraudulent Loans Over NT$3 Billion

(Central News Agency, Taipei, June 5, Reporter Lin Chang-shun) Former Far Eastern Air Transport (FAT) Chairman Chang Kang-wei, who is already serving a prison sentence for embezzling from FAT, was indicted by the Taipei District Prosecutors Office on June 5 for allegedly defrauding banks of over NT$3 billion in 2013. Chang and two others were charged with violating the Banking Act (bank fraud), the Business Accounting Act, and the Criminal Code (forgery).

Chang was accused of misappropriating FAT funds and transferring principal and interest from companies under his Huffu Group to FAT through a cooperative bank loan case. The Taipei District Court sentenced Chang to 14 years in prison for business embezzlement, breach of trust, and violations of the Business Accounting Act, with one year eligible for a fine.

In November of last year, the Taiwan High Court upheld the 14-year sentence and ordered the confiscation of NT$1.98 billion in criminal proceeds. A 2.5-year sentence for violating the Civil Aviation Act was finalized as it could not be appealed, leading to Chang's imprisonment.

Prosecutors further found that Chang, as the de facto head of the Huffu Group, faced a funding shortfall starting in 2009 due to land investments in Tamsui District, New Taipei City. In 2013, he allegedly used fake purchase agreements to fraudulently sell 15 parcels of land owned by his companies to another firm. He then used this development project to apply for a NT$3.5 billion loan from a bank, of which NT$3 billion was disbursed.

The Taipei District Prosecutors Office concluded the investigation on June 5, indicting Chang and two others for bank fraud, violations of the Business Accounting Act, and forgery, and requested the court to confiscate the criminal proceeds. (Editor: Huang Ming-hsi) 1150605