Wu Shu-chen - Money Laundering

Money Laundering

On August 14, 2008, Chen Shui-bian called an evening press conference to admit to misstating campaign expenses in previous elections (two bids each for mayor and president), and had campaign monies wired to overseas accounts. Chen alleges that the wiring of the money was done by his wife and unknown to him.

There is also an investigation launched by Swiss authorities over a Swiss bank account bearing Chen's daughter-in-law's name: roughly $31 million USD was wired to the account from Taiwan and was then forwarded again to an account in the Cayman Islands. Swiss and Taiwan authorities are cooperating in investigating whether or not there are instances of money laundering committed by members of the former first family. It is unknown whether or not the wiring of the Swiss accounts and the wiring of campaign money overseas by Mrs. Chen are related.

Chen announced the following day, on August 15, that both he and his wife will leave the Democratic Progressive Party for good.

Chen Shui-bian and Shu-jen, on August 15, resigned from the Democratic Progressive Party (DPP) and apologized. Chen Shui-bian said: “Today I have to say sorry to all of the DPP members and supporters. I let everyone down, caused you humiliation and failed to meet your expectations. My acts have caused irreparable damage to the party. I love the DPP deeply and am proud of being a DPP member. To express my deepest regrets to all DPP members and supporters, I announce my withdrawal from the DPP immediately. My wife Wu Shu-jen is also withdrawing from the party.” DPP Chairwoman Tsai Ing-wen also apologized to the public on behalf of the party: “In regard to Chen and his wife’s decision to withdraw from the party and his desire to shoulder responsibility for his actions as well as to undergo an investigation by the party’s anti-corruption committee, we respect his decision and accept it.” Taiwan prosecutors on August 16 interrogated Wu Shu-chen and asked to explain overseas money transactions. A Kuomintang (KMT) party member alleged that Chen's wife bought jewelry to launder money. Hung Hsiu-chu, KMT, charged that Chen's family opened 4 bank accounts in Switzerland, with total deposits of 32 million U.S. dollars, which Chen remitted through his daughter-in-law, Huang Jui-ching.

On August 17, Supreme Court Prosecutor's Office announced Taiwanese investigators took away boxes of documents, after search of Chen's home in Taipei City, his office, and in Tainan City, at the home of his wife's brother Wu Ching-mao. Chen was prohibited by prosecutors from leaving Taiwan. Chen has $ 21 million at overseas banks held in the name of family members. Shih Ming-teh, a former leader of Chen's Democratic Progressive Party accused Chen of laundering at least $ 85 million from an entrepreneur bidding for bank ownership in 2005. Coast Guard Administration spokesman Hsieh Ching-chin said: "We received the order from the special investigation unit around 9:20 pm last night saying former president Chen was barred from leaving the country." Chen's probe concerns NT $ 14.8 million (US $ 480,500) in special expenses from the government, while he was president, and his wife is on trial for corruption and document forgery. Prosecutors found at least NT $ 1.5 million had been spent on diamond rings and other luxury items for his wife.

Taiwanese judges, on September 19, 2008, denied prosecutors' plea to arrest Wu Shu-chen after she failed to appear in court for the 17th time citing ill health. Her attorney, Lee Sheng-hsiung stated: "According to the National Taiwan University Hospital it could be life- threatening for Wu to attend court. This is a grave situation so my client decided to respect the hospital's advice." Chiu Yi, KMT legislator said "the former family devalued the justice, they were the most shameless because Wu Shu-chen did not appear in the court for State Fund Affairs."

Wu was formally convicted and sentenced to a year in prison for perjury on September 2, 2009. In addition, Wu's son, daughter, and son-in-law also received one-year jail sentences of their own, but courts reduced the term to six months due to amnesty rules.

On 2/18 2011, Wu was examained by the TaiChung prison hospital and was deemed to be too ill to serve, thus she was put under house arrest but will not be jailed.