Victim of Over $1 Billion Scam Yet Hesitant to Sue? Tzu Chi's Latest Statement Confirms 'Victim' Status: Will Pursue Recovery of Criminal Proceeds

In 2021, the Tzu Chi Foundation became involved in a fraud case related to the procurement of BNT vaccines. The Taichung District Prosecutors Office concluded its investigation and indicted 17 individuals, including Chen Yu-Hsuan, former chairman of the Changhua Bar Association. Prosecutors allege that Chen and others falsely claimed to have access to vaccine supplies and collected a commission of USD 30 million—approximately NT$1.06 billion—from Tzu Chi. Following public scrutiny over whether Tzu Chi would file charges or seek restitution, the foundation today (7th) released a three-point statement through Lee and Li Attorneys-at-Law, formally declaring its status as a victim. It stated that if courts confirm criminal liability and identify illicit proceeds, it will legally request their return and reserve the right to file ancillary civil lawsuits for damages.

According to prosecutors, the 17 defendants are suspected of fraud, breach of trust, and money laundering. Authorities have requested confiscation of over NT$1.11572 billion in illicit gains. Assets seized so far—including cash, gold, financial accounts, and real estate—total more than NT$1.0815 billion. The case is now under judicial review, and final determinations on guilt remain pending.

Will Tzu Chi pursue compensation? In their statement, attorneys Li Chia-Ching and Kuo Yu-Fang said, "Tzu Chi Foundation, as the victim, expresses profound respect and gratitude to investigative agencies for their diligent efforts in solving this case and effectively seizing related criminal assets." The statement explicitly positions Tzu Chi as a victim.

The lawyers emphasized that since prosecutors have already filed criminal charges, they will represent Tzu Chi in actively cooperating with court proceedings, "presenting opinions and asserting rights in court."

Regarding delayed civil claims, the statement clarified that "after judicial review, if the court confirms the defendants’ criminal conduct and existence of illicit proceeds," legal counsel will request the court to return such proceeds to the victim and reserve the right to initiate ancillary civil litigation for compensation.

The statement concludes by stressing that Tzu Chi will "take all necessary legal actions to protect the rights of the foundation and its donors." Previously, Tzu Chi expressed regret and sorrow over the indictment of personnel from Yu-Da Company, which had been entrusted with BNT vaccine procurement, and pledged full cooperation with judicial procedures.

Full Statement from Tzu Chi Foundation via Lee and Li Attorneys-at-Law:

1. Tzu Chi Foundation, as the victim, expresses deep respect and gratitude to investigative authorities for their active and thorough handling of this case and effective seizure of criminal proceeds.

2. As the case has been prosecuted by the prosecutor, our firm’s attorneys will represent the victim, Tzu Chi Foundation, in actively assisting court proceedings, presenting opinions and asserting rights in court.

3. After judicial review, if the court confirms that the defendants have indeed committed crimes and generated illicit proceeds, our attorneys will, on behalf of the client, request the court to legally return the criminal proceeds to the victim, reserve the right to file ancillary civil lawsuits for compensation, and take all necessary legal measures to safeguard the rights of Tzu Chi Foundation and its public donors.