Tzu Chi Loses Over $100 Million in BNT Vaccine Scam! Tactics and Methods of Fraudulent Lawyer Exposed — Tzu Chi Foundation Responds

At the height of the COVID-19 pandemic in 2021, when not only masks and protective supplies but also vaccines were extremely scarce, Tzu Chi Foundation spent a huge sum to procure BNT vaccines for Taiwan—only to unexpectedly uncover a major fraud case. According to prosecutors, Chen Yushuan, a former chairman of the Changhua Bar Association, colluded with a man surnamed Li, falsely claiming to have special connections with Shanghai Fosun Pharmaceutical—the authorized distributor of BNT vaccines—and gained Tzu Chi’s trust. They charged exorbitant fees and ultimately defrauded over NT$1 billion. On June 6, Taichung District Prosecutors Office concluded its investigation and formally indicted Chen and others on charges of fraud and money laundering. Authorities have already seized cash, gold, bank deposits, luxury homes, and other assets totaling over NT$1 billion.

Following the incident, Tzu Chi Foundation issued an official statement, explaining the procurement process and emphasizing its full cooperation with judicial authorities.

How Did Tzu Chi Lose Over NT$1 Billion? How Did the Lawyer Gain Trust?

According to the Ministry of Justice Investigation Bureau, in 2021, domestic demand for vaccines was urgent. Chen and Li falsely claimed to have special procurement capabilities through being "major shareholders of Shanghai Fosun." In reality, companies like Foxconn and TSMC had already directly negotiated vaccine quantities and prices with Shanghai Fosun. Chen and Li further lied that both Foxconn and TSMC had procured vaccines through them, even claiming "TSMC paid high legal fees," to gain Tzu Chi’s trust and demand massive compensation. Tzu Chi transferred over NT$1.061 billion cumulatively to Jade Enterprise Management Consulting Co., Ltd., managed by Chen.

What Illegal Gains Were Seized? The 650 Million NTD in Gold Sparks Discussion

After the case broke, investigators traced the money flow. The Northern Mobile Station of the Investigation Bureau launched multiple search and detention operations starting April this year. During raids, they seized smartphones, ledgers, bank account records, NT$93 million in cash, and over 158 kilograms of gold—valued at more than NT$650 million—making it the most eye-catching piece of evidence. Additionally, prosecutors seized luxury properties, bank deposits, and Mercedes-Benz vehicles, bringing the total seized assets to over NT$1.09 billion. The Taichung prosecutors have indicted Chen and others on fraud and money laundering charges.

The Northern Mobile Station cracked a case where a lawyer allegedly used BNT vaccine procurement as a front to defraud Tzu Chi Foundation of over NT$1 billion, seizing large quantities of cash, gold, and other assets. (Central News Agency)

Did Tzu Chi Only Learn About This After the Scandal? Foundation Statement Clarifies Vaccine Procurement Plan

In response, Tzu Chi Foundation stated: "Today, we learned through media reports that personnel from Yu Da Company, who assisted in procurement, were involved in criminal activity. We are deeply saddened. We have engaged legal counsel and will fully cooperate with judicial investigations and proceedings. We will also take necessary actions to protect the rights and interests of the foundation, Tzu Chi volunteers, and donors."

Regarding the BNT vaccine procurement, the foundation explained: In 2021, as confirmed cases and deaths continued to rise, Tzu Chi chose to procure BNT vaccines to safeguard public health and meet widespread needs. Ultimately, 5 million doses were successfully procured and donated to the government. The procurement followed four principles:

1. Ensuring strict use of donated funds: On May 31, 2021, Tzu Chi publicly announced its intent to procure vaccines. On June 9, it signed a commission agreement with Jade Enterprise Management Consulting Co., Ltd. to procure legally manufactured foreign vaccines.

2. Adhering to open market benchmarks for reasonable pricing: In mid-June 2021, the market price per dose of BNT vaccines became publicly available in Taiwan. Tzu Chi used this information to set a maximum procurement price cap for negotiations.

3. Final procurement amount and unit price determined within public information range: To address the urgent national need for vaccines and maintain consistency with donation volumes from TSMC, Foxconn (Evergreen Foundation), and Tzu Chi, the foundation officially confirmed the procurement of 5 million doses on July 2, 2021. This aligned with publicly available information. Given that all purchasing parties had signed confidentiality agreements, the final total cost and unit price were decided within the public information range.

4. Vaccine procurement costs verified by accounting firms, disclosed in financial reports, and audited by the Ministry of Health and Welfare: All BNT vaccine procurement expenses were certified by accounting firms, publicly disclosed in financial statements, and subject to review by the Ministry of Health and Welfare to ensure public accountability.