Former Keelung Prosecutor Accused of Loan Sharking Over NT$100 Million, Collecting Over NT$40 Million in Interest

(CNA, Keelung, June 23) Former Keelung District Prosecutors Office prosecutor Lin Yu-chun is suspected of engaging in loan sharking with annual interest rates as high as 84%, lending out a total of NT$100 million and collecting over NT$43.02 million in interest. The Keelung District Prosecutor's Office today concluded its investigation and indicted Lin Yu-chun and three others on charges including usury and money laundering.

The Keelung District Prosecutor's Office stated in a press release today that a man surnamed Kao, the actual person in charge of a company, faced financial difficulties due to cash flow problems. Kao met a man surnamed Tung, who ran a singing supply store, when Kao patronized Tung's establishment. Upon learning of Kao's urgent need for funds, Tung lent Kao money multiple times, agreeing on usurious annual interest rates ranging from 31.6% to 60%. Tung received over NT$1.16 million in interest from Kao.

Tung later introduced Lin Yu-chun's wife, Ms. Chiang, to work at Kao's company. This led to Lin Yu-chun meeting Kao. To avoid public knowledge of his illegal lending activities as a prosecutor, Lin Yu-chun, through Tung's introduction and after paying Tung a 60,000 NT dollar brokerage fee, and paying Mr. Chung over 140,000 NT dollars in remuneration, actually provided the funds and collected the interest. The loans were made under Chung's name to Kao, with an agreement to collect usurious annual interest rates from 60% to 84%. A total of over NT$3.54 million in interest was collected.

Lin Yu-chun and Ms. Chiang also borrowed money from friends and relatives at lower interest rates, or obtained funds through disguised investments, which Lin Yu-chun then re-lent to Kao at usurious annual interest rates of 42% to 60%. The total amount lent out reached over NT$100 million, with interest collected exceeding NT$39.48 million.

To conceal his usurious activities, Lin Yu-chun not only failed to truthfully declare this debt relationship when reporting his assets as a public official but also went through a sham divorce registration with Ms. Chiang, allowing Lin Yu-chun to avoid reporting Ms. Chiang's financial status from 2024 onwards.

Prosecutors stated that around September of last year, when Kao was unable to repay his debts, Lin Yu-chun, to secure his claim, demanded that Kao undertake construction projects at a company established by Lin Yu-chun under another person's name, with the proceeds to be prioritized for debt repayment. Lin Yu-chun is suspected of using his official position and opportunities to coerce Kao into signing a debt repayment contract, but this was ultimately unsuccessful as Kao did not sign the contract.

The Keelung District Prosecutor's Office noticed irregularities in Lin Yu-chun's situation at the end of last year and initiated an investigation. Prosecutors launched searches on February 25th and applied to the court for the detention and prohibition of communication for Lin Yu-chun, which was approved. The investigation concluded today, and Lin Yu-chun, Ms. Chiang, Mr. Chung, and Mr. Tung were indicted on charges including usury. (Editor: Lin Shu-hui) 1150623

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