Illegal Pyramid Scheme Defrauds 42.8 Million, Two Women and One Man Indicted

Prosecutors in Chiayi have indicted three people for allegedly running an illegal multi-level marketing scheme that defrauded 425 members and illicitly obtained over NT$48.81 million. The accused, identified as Chen (62), the scheme's operator, Xie (64), the accountant, and Wu (60), a regional representative, promoted projects under names like the "Lei Huo An Jia Project" and "Zhi Fu 3.0 Scheme."

The indictment alleges that the scheme's primary income source was not the sale of products at fair market prices but rather the recruitment of new members. Participants were promised substantial bonuses and travel subsidies for recruiting others. Chen allegedly launched the "Lei Huo An Jia Project" in May 2024, requiring a NT$57,600 payment for top-tier membership.

Further complicating the scheme, Xie and Wu allegedly provided fabricated "Goods Receipt Confirmation" documents to members. These documents falsely indicated that loans obtained from financing companies were used to purchase health products, when in reality, the funds were channeled into the pyramid scheme. Wu personally profited at least NT$7.8 million from this aspect, while three financing companies were defrauded of NT$7.65 million. The scheme collapsed around May of the previous year when the company faced financial difficulties, and members failed to receive promised bonuses, leading to police reports.