Wei-Ching Group chairman Shen Ching-ching, manager indicted for alleged 7.2 billion NT dollar land sale profit

Wei-Ching Group chairman Shen Ching-ching and financial manager Chang Chih-cheng are facing trial in Taipei for their alleged involvement in a scheme to profit 7.2 billion New Taiwan dollars from the sale of the Core Pacific City land. Prosecutors accuse Shen of manipulating the land's valuation through a "left hand selling to right hand" transaction, effectively selling the property to a subsidiary at an inflated price.

The Core Pacific City, built on the former site of the Tang Eng Iron Works, ceased operations in 2018 and was put up for tender. The company had previously secured a 12 billion NT dollar syndicated loan, with a significant portion remaining unpaid by the original repayment deadline. Investigations suggest Shen accumulated substantial gambling debts, allegedly packaging them as a loan through an overseas shell company.

Prosecutors allege that to resolve massive debts, Shen, who held multiple key positions within the group, orchestrated the sale of Core Pacific City to its subsidiary, Dingyue Company, for over 37.2 billion NT dollars. This price was reportedly inflated by 7.2 billion NT dollars above the estimated market value at the time. Of the inflated amount, over 2.9 billion NT dollars allegedly flowed into a shell company, "Rui Liang Taiwan Branch," to repay Shen's gambling debts.

Chang Chih-cheng is also accused of assisting Shen in this irregular transaction and allegedly concealing the flow of funds. The prosecution has requested a 26-year prison sentence for Shen. The court has already ordered the seizure of 2.7 billion NT dollars from the accounts of "Rui Liang Global," the company suspected of being backed by Macau junket operator Alvin Chau. The trial is expected to clarify the defense's arguments and the key points of contention between the prosecution and defense.