Behind the Scenes: Tzu Chi Loses NT$1.06 Billion in Scam! Godfather, Foxconn, TSMC — How Vaccine Gold Scammers Fooled Master Cheng Yen

The global COVID-19 pandemic ravaged the world in 2021, leaving Taiwan with deep scars from severe vaccine shortages—scars that still linger five years later. In August 2026, prosecutors and Taiwan’s Ministry of Justice Investigation Bureau uncovered a previously unknown, film-worthy fraud saga involving Tzu Chi Charity Foundation, Taiwan Semiconductor Manufacturing Company (TSMC), and Hon Hai Precision (Foxconn)’s joint purchase of 15 million doses of BNT vaccines from Shanghai Fosun. The plot rivals the movie 'Catch Me If You Can' in complexity and deception.

At the center of this scandal is Li Yi-ru, a con artist far from Leonardo DiCaprio’s charm but equally persuasive. Using nothing but silver-tongued rhetoric, he convinced Tzu Chi officials he was a major shareholder of Shanghai Fosun. During a face-to-face meeting with Venerable Master Cheng Yen, the spiritual head of Tzu Chi, Li delivered such eloquent and compassionate speeches that he was mistaken for a living bodhisattva—a savior sent to relieve suffering.

On August 6, 2026, Taichung District Prosecutors Office and the Ministry of Justice Investigation Bureau simultaneously announced they had cracked a case in which Tzu Chi Charity Foundation was swindled out of NT$1.06 billion (approximately USD 34 million) during the 2021 pandemic. The funds were allegedly paid as consulting fees and cold-chain logistics costs for BNT vaccine procurement. Suspects include Chen Yu-shuan, former chairman of Changhua Bar Association; Li Shih-tsung, a well-known religious figure in central Taiwan known as a 'spiritual mentor'; his wife Lo Wen-fang; and Li Yi-ru, Li Shih-tsung’s son.

At the time, Taiwan faced extreme difficulty securing vaccines. With government channels overwhelmed, private enterprises and charitable organizations stepped in to procure doses independently. TSMC and Foxconn successfully negotiated official contracts with Fosun to purchase BNT vaccines, which they then donated to the Taiwanese government. However, Tzu Chi sought a similar path—and that’s when the fraud ring struck.

Li Yi-ru’s group approached Tzu Chi claiming to be behind-the-scenes owners of Shanghai Fosun. They promised exclusive access and fast-tracked delivery of millions of doses, demanding large upfront payments and consultancy fees. Trusting their claims and driven by humanitarian urgency, Tzu Chi transferred the funds without conducting sufficient due diligence.

In reality, no formal relationship existed between the suspects and Shanghai Fosun. All documents presented—including corporate seals, shareholding records, and authorization letters—were forged or altered. No vaccines were ever delivered, and communication ceased shortly after payment. It wasn’t until 2023 that Tzu Chi began internal audits, tracing the money trail over several years before authorities finally intervened in 2026.

This scam is particularly egregious not just for its scale, but for exploiting religious faith and public goodwill. Li Shih-tsung had long operated as a spiritual guide in Taichung, amassing a loyal following. His influence helped his son craft a false identity as a legitimate business figure, enabling access to high-level Tzu Chi decision-makers.

A mysterious figure referred to as the 'Godfather' also appears linked to the scheme, raising concerns about underground financial networks and collusion among political, religious, and business elites. Some media speculate this 'Godfather' may be a shadowy power broker connected to multiple influential figures.

While Tzu Chi is clearly the victim, questions remain about internal oversight failures in approving such a massive transaction without verification. Meanwhile, TSMC and Foxconn’s involvement was strictly through legal, transparent channels and they are confirmed to have no connection to the fraud.

This case highlights the vulnerabilities in emergency response systems and how altruism can be weaponized by sophisticated fraudsters. Moving forward, it underscores the need for rigorous third-party verification, legal compliance checks, and international due diligence—especially when life-saving resources like vaccines are at stake.