Taiwan Official's Scheme: Public Fund Employee Convicted in Multi-Million Dollar Fraud

Former employee of the Yilan County Government, Xu Zhixin, received a reduced sentence after being found guilty of defrauding investors with false claims of government contracts.

Taipei, Taiwan - Former employee of the Yilan County Government's Public Production Fund, Xu Zhixin, has been convicted of fraud, resulting in a significant financial loss for investors. Xu Zhixin, who initially received a 12-year sentence, had his sentence reduced to 4 years and 10 months on appeal.

Xu Zhixin, who had been employed by the Yilan County Government from February 10, 2020, to September 29, 2023, held various positions, including "Employed Business Agent" and "Employed Specialist". His responsibilities included handling public production-related affairs, assessing the impact of public production on the local community, and promoting public production initiatives.

Facing financial difficulties, Xu Zhixin falsely presented himself as having inside information on government procurement projects, claiming investors could profit. He solicited funds from 17 victims, falsely promising returns on various projects, including those related to the "Mazu Cultural Festival," Christmas events, and the Yilan Children's Folklore Festival.

Victims, believing Xu Zhixin's claims due to his perceived connection to the County Magistrate, Lin Zimiao, invested sums ranging from NT$200,000 to NT$12.8 million, totaling over NT$65 million. When Xu Zhixin failed to deliver on his promises, the victims filed complaints, and Xu Zhixin disappeared in September 2023. The Yilan County Government subsequently terminated his employment.

Xu Zhixin was apprehended near Taipei Main Station in early October and was prosecuted. The first court had sentenced Xu Zhixin to 12 years in prison. However, on appeal, the High Court revised the sentence to 4 years and 10 months. The court cited that Xu Zhixin’s role in the county government did not directly involve procurement bidding, and thus, the fraudulent activities were not directly related to his official duties.