Taiwan and US Unite: First-Ever Joint Investigation Cracks Down on "Pig Butchering" Scam

A cross-border romance scam orchestrated by a Taiwanese mastermind results in a historic collaboration between Taiwan and the United States.

A recent case highlights an unprecedented collaboration between Taiwan and the United States in combating cross-border fraud. The Taichung District Prosecutors Office (中檢) successfully partnered with US authorities to dismantle a sophisticated "pig butchering" scam, also known as a "romance scam," that targeted victims for substantial financial gain.

The investigation centered on a high-ranking female executive, identified as 廖女 (Liao), who masterminded the scheme. Liao directed US-based accomplices to employ emotional manipulation and deceptive investment strategies to defraud three victims. The total amount swindled from the victims was approximately $170.52 million NTD.

Acting on the US-Taiwan Mutual Legal Assistance Agreement, the Taichung District Prosecutors Office dispatched prosecutors to the United States to interrogate co-conspirators and gather critical evidence. Concurrently, a team from the US Homeland Security Investigations (HSI) visited Taiwan to collect evidence and conduct their own inquiries. This marks the first instance of such direct investigative cooperation between the two nations.

The scheme involved Liao impersonating individuals to open multiple bank accounts in the US. She then instructed her accomplices to entice victims with small-scale investments to build trust before persuading them to invest substantial sums. The victims would either hand over cash directly to the US-based accomplices or transfer funds to Liao's fraudulently opened accounts.

The ill-gotten gains were used to purchase luxury items such as RM diamond watches, diamonds, and virtual currency. Additionally, a Lexus RX350h was acquired for the use of Liao’s father. Liao was arrested at the airport when she returned to Taiwan during the Lunar New Year.

The case has resulted in indictments in both Taiwan and the United States. The Taiwanese prosecutor is seeking a 10-year prison sentence for Liao. The US has also filed charges against the accomplices in Nashville, Tennessee, and Los Angeles, California.

The joint investigation was spearheaded by Prosecutor General 張斗輝 (Chang), who convened numerous meetings to coordinate the judicial cooperation. In March, the US authorities visited the Taichung District Prosecutors Office, and US prosecutors participated via video conference, assisting in the questioning of the detained Liao and facilitating the transfer of evidence.

In late April, Chief Prosecutor 陳信郎 (Chen), Prosecutor 張富鈞 (Chang), and officials from the Criminal Investigation Bureau's International Affairs Division traveled to the United States. Accompanied by personnel from the Ministry of Foreign Affairs' office in the US, they met with the US Homeland Security Investigations team. The team proceeded to interview the Sun accomplice as a witness in Tennessee, obtaining key testimony.

This case represents a significant milestone in the application of the US-Taiwan Mutual Legal Assistance Agreement, as it marks the first time Taiwanese prosecutors have directly questioned witnesses on US soil. It sets a new precedent for cross-border crime cooperation and underscores the commitment of both Taiwan and the United States to combat transnational criminal activities.