Foxconn Founder Exposes Fraudulent Vaccine Deal, Lawyer and Broker Charged

A high-profile fraud case has emerged in Taiwan, involving a lawyer and a broker accused of defrauding the Tzu Chi Foundation of roughly NT$1 billion (US$30 million). The alleged scheme centered on false promises to procure 5 million doses of the BNT COVID-19 vaccine during the severe pandemic in 2021.

The core of the deception was shattered by Terry Gou, the founder of Foxconn. In a written statement, Gou explicitly stated that his foundation's procurement of BNT vaccines was conducted directly with German BNT shareholders and involved no intermediaries or brokers. He further clarified that he had never commissioned the accused individuals, Li Yi-ru and Chen Yu-hsuan, for any part of the vaccine acquisition.

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The procurement of BNT vaccines never involved any intermediaries or brokers, nor did we entrust Li Yi-ru and others.

Prosecutors revealed that Li Yi-ru had claimed to manage a US$5 billion family fund and asserted he had access to procurement channels for BNT vaccines, even alleging he accompanied Gou to Germany for negotiations. Chen Yu-hsuan, acting as a lawyer, facilitated these claims, leading Tzu Chi to sign a commission agreement with a company managed by Chen, resulting in the payment of substantial fees. The investigation also uncovered that during their initial meeting with Tzu Chi chairwoman Cheng Yen, both Chen and Li performed a "kowtow" ritual to gain her trust.

Investigators found that Gou had previously rejected Li Yi-ru's investment and development proposals, citing unverified background information and unsuitable investment terms. The prosecution believes that Chen and Li, fully aware that the vaccine procurement negotiations were already handled by Foxconn, TSMC, and the Yonglin Foundation, falsely presented themselves as intermediaries to solicit exorbitant commissions. Both have been charged with fraud and money laundering.

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The two individuals, knowing that the vaccine procurement had already been completed by Foxconn, TSMC, and the Yonglin Foundation, falsely claimed to be intermediaries to solicit sky-high commissions.