Politics

Switzerland freezes fugitive tycoon’s funds

• Publication Date：11/20/2009
• Source： China Times

Judicial authorities in Switzerland have frozen a sum of US$2 million recently remitted to a Swiss financial institution from the United States by fugitive Taiwanese business tycoon Wang You-theng.

The authorities also formally requested judicial assistance from Taiwan in their investigations into the source of the funds belonging to the former chairman of the Rebar Asia Pacific Group who has been on Taiwan’s most wanted list for more than two years for allegedly embezzling over NT$70 billion (US$2.17 billion) from the group. The Taipei District Public Prosecutors Office has responded to the request by launching a probe into the case.

The request for judicial assistance is the second by Swiss officials in recent weeks following a similar request in their investigations into a sum of over US$21 million allegedly concealed in bank accounts in the country by former President Chen Shui-bian and members of his family. Chen and his wife were recently sentenced to life in prison on corruption and money laundering charges.

According to sources, a California branch of a U.S. bank wired over US$2 million to a financial institution in Switzerland earlier this year. The irregular remittance drew the attention of Swiss authorities who later discovered that the money had been remitted by Wang. Because of Wang’s fugitive status, the authorities suspected the money had been laundered and decided to freeze the funds and send a request for judicial assistance via the Taipei Cultural and Economic Delegation’s Geneva office.

Deputy Minister of Justice Huang Shih-ming said that Taiwan and U.S. authorities have already been actively cooperating in tracing money flows related to Wang’s case. Besides the close cooperation between the two sides in the money laundering investigation, Huang said he hopes that the two sides can sign an extradition treaty as soon as possible so that Wang can be sent back from the U.S. to Taiwan to face trial.

The Rebar scandal broke out more than two years ago. Wang’s family is suspected of having set up 68 front companies to loot some NT$73.1 billion from enterprises belonging to the group. In late December 2006, Wang and his wife fled the country just days before prosecutors began a probe into allegations of Rebar financial impropriety. The Taipei District Court issued warrants for the couple’s arrest on May 1, 2007.

In their investigations that year, prosecutors discovered that besides embezzling more than NT$70 billion, Wang also allegedly laundered up to NT$57.14 billion in Taiwan currency and more than US$147 million in greenbacks.

If investigations clearly determine that the sum remitted to Switzerland is related to the more than US$100 million in embezzled funds sent to the U.S., prosecutors will request that Swiss authorities seize the money and send it back to Taiwan. (SB)