Taiwan Cracks Down on Fitness Company Laundering Scheme: Unveiling a Major Fraud

Authorities in Taitung County expose a sophisticated money-laundering operation disguised as a fitness company, highlighting the ongoing fight against fraud in Taiwan.

The Taitung County Government in Taiwan held a press conference on April 14th to highlight the successes in combating fraud and to increase public awareness and preventative measures. The conference was co-chaired by Deputy County Magistrate Wang Chih-hui and Police Bureau Chief Tsai Yen-ming, who revealed recent fraud cases and the results of anti-fraud efforts.

Police reported the successful dismantling of a fraudulent investment scheme that used a fitness company as a front. The total amount of money involved in this case reached a staggering NT$18 million, with a large amount of money-laundering tools and illicit gains seized.

According to statistics from the Taitung County Police Department, the county received 83 fraud cases in April 2025, with a total financial loss of NT$21.82 million. Through collaboration with financial institutions, authorities successfully blocked NT$16.06 million from falling into the hands of fraud groups. The entire month also saw the implementation of a nationwide anti-fraud project, resulting in the discovery of 10 fraud groups, the arrest of 41 suspects, and the seizure of over NT$1 million in illegal gains.

One particularly noteworthy case involved a fitness company that colluded with a fraud group, serving as a crucial "water house" for money laundering. Police indicated that while the company appeared to be operating normally on the surface, it was actually using shell companies and fake accounts to launder money for the fraud group. Investigations revealed that the company's head, Lee, used his company's accounts as the final destination for receiving funds from the fraud, withdrawing cash to obscure the flow of funds.

Following thorough evidence collection, the police sought the direction of the Taitung District Prosecutors Office and conducted searches and arrests in multiple locations, including New Taipei City, Changhua County, and Kaohsiung City. They apprehended Lee and six others, seizing items such as bankbooks, financial cards, money counters, company seals, and over NT$260,000 in cash. Investigations revealed a total of eight victims across Taiwan, with a total loss of NT$18 million. The case has been handed over to the prosecutor's office for further investigation.

At the conference, Deputy County Magistrate Wang Chih-hui emphasized that preventing fraud is not solely the responsibility of the police but requires the concerted efforts of all departments within the county government, alongside strengthening community outreach networks. He stated that the county will collaborate with local organizations, businesses, and religious groups to expand the impact of public anti-fraud efforts. He urged citizens to contact the 110 or 165 anti-fraud hotline to verify any suspicious calls or messages, thereby avoiding falling victim to scams.

Furthermore, the police also encouraged the public to use the "165 Anti-Fraud Dashboard" website. Its "Report Vehicle Operators Zone" offers a reward program, with a reward of NT$50,000 for anyone who provides information that leads to the arrest of a vehicle operator. This special project has a total of 100 available spots, and rewards will be distributed until they are used up.