Taipei:The Taipei District Prosecutors Office has indicted Farxun E-commerce Co., Ltd. and 25 individuals, including the company's CEO, surnamed Hsieh, for their involvement in an alleged fraudulent investment scheme that reportedly raised over NT$219 million (US$6.89 million).
According to Focus Taiwan, the indictment charges the company and its associates with illegally accepting deposits from the public under the Banking Act. Hsieh faces additional charges of aggravated fraud and money laundering, while the company's CFO, surnamed Wu, is charged with money laundering. The de facto head of the company, surnamed Chen, is on a wanted list as he could not be located during the investigation.
The fraudulent scheme, which began soliciting investments in January 2024, involved selling a "FAFAGO Green Energy EV Charger" investment through social media and briefings in Taipei, Taichung, and Kaohsiung. Investors were promised a guaranteed monthly return of NT$3,520 per NT$300,000 investment, with an annual return rate of 14.08 percent. They were also assured that the company would buy back each charger after three years for NT$210,000.
Prosecutors highlighted that this arrangement was presented as a high-return investment rather than a genuine business venture. Despite knowing that fewer than 200 chargers were installed in 2024, Hsieh and Chen continued to solicit further investments, even though the revenue was insufficient to cover promised returns.
Funds collected from investors were used to pay sales bonuses and returns to earlier investors instead of installing chargers. Prosecutors estimated that the company illegally acquired over NT$219.19 million between January 2024 and January 2026, with some funds being transferred to affiliated companies and personal accounts to conceal their origin.
In April 2026, the company failed to pay the promised returns, leading investors to report the scheme to authorities. Subsequent investigations included searches and raids in June. Prosecutors allege Hsieh attempted to distance himself from Chen once aware of cash flow issues, yet he continues to deny any wrongdoing. They are seeking a prison sentence of more than 16 years for Hsieh.