A 27-year-old graduate of National Taiwan University (NTU) claimed to hold a "U.S. futures manager business license" and secretly solicited funds from acquaintances for overseas futures trading between February 2022 and April 2023. The scheme not only yielded no profit but left a deficit of approximately NT$8.48 million, and dragged in his police officer father who abused law enforcement databases to harass creditors. The Shilin District Prosecutors Office has indicted the man on charges of violating the Futures Trading Act and fraud.
Fake license, circle-of-trust targets
According to the indictment, the defendant, surnamed Li, targeted six creditors and friends, including two creditors surnamed Liu and Cao, as well as an NTU senior, a cram school supervisor, an aunt, and a friend's acquaintance. He touted "professional short-term overseas futures experience with stellar returns," providing his own Cathay United Bank and China Trust bank accounts for deposits and trading with his futures account. He also falsified transaction records to create a facade of consistent profitability, while actual results were consistently negative. Total funds raised exceeded NT$55.5 million, ending with a net loss of about NT$8.48 million.
Funds exhausted, victims sue
In October 2023, Li admitted that all the futures trading funds were "gone," prompting victims to file lawsuits. The prosecutors determined that Li never obtained the required license from the Financial Supervisory Commission (FSC) to operate as a futures manager, and charged him under the Futures Trading Act and fraud statutes.
Police father used internal database to intimidate
The case also ensnared Li's father, Li Jinshan, a former detective squad leader in the Wanhua Precinct of Taipei City Police. After his son's investment losses drew creditor pressure, the elder Li, between October and November 2023, falsely claimed to be "conducting criminal investigations" and repeatedly logged into police databases to obtain personal information of creditors Liu and Cao. Father and son then met the creditors at a coffee shop and later at a club in Zhongshan District, Taipei. According to the court verdict, Li Jinshan told creditor Liu, "I know your father is from Keelung and goes by A-Fu," pretended to know Liu's sister, and accurately recited Liu's date of birth and address, adding "I know where you live" to exert pressure.
Li Jinshan learned he was under investigation and retired early on July 16, 2024. The Shilin District Court sentenced him to 2 years in prison, suspended for 3 years, and ordered him to pay the public treasury NT$200,000. Additionally, the Disciplinary Court fined him NT$100,000. Victims may pursue civil claims for losses.
Prosecutors remind investors to use only legitimate asset management firms licensed by the FSC to avoid similar frauds.