Former independent legislator Tsai Hau (
Liang, the former president of the Bank of Overseas Chinese, and Tsai were suspected of assisting Wang Hsuan-jen (
Taipei prosecutors said the pair were indicted for violations of the National Security Law (
Wang was indicted in September 2005 for breach of trust in connection with of a multi-billion NT dollar loan scandal. He and two other top officials in the bank were accused of approving illegal loans to six syndicates, including Taiwan Pineapple Corp, which cost the bank billions in bad loans.
He was convicted but fled the country before he was to begin serving his term.
Wang was repatriated from China last month, the first major economic fugitive to be repatriated since the Kinmen Agreement was signed on Sept. 12, 1990.
Prosecutors said yesterday that in interviewing Wang after his repatriation, they learned he had flown from Taipei to Penghu last May before sailing on a fishing boat to Xiamen.
The sea trip took half a day and the following day Wang traveled by train to Shanghai, where he stayed until his arrest, prosecutors said he told them.
Tsai and Liang allegedly helped Wang organize his trip and had provided him with funds, prosecutors said.
They said Liang had provided Wang with details of his experiences in fleeing the country and living as a fugitive in China.
Liang, the former president of the Overseas Chinese Bank and chairman of the Hsinchiehchung Construction Co, fled to China in 2004 after being found guilty of embezzling funds from his bank and forging contracts for the construction firm and was sentenced to a total of 26 months in prison.
He returned home in April 2006, vowing to provide testimony against former Presidential Office deputy secretary-general Chen Che-nan (
Prosecutors said Liang would face another trial upon his release from prison because of the help he gave Wang.
Law enforcement officials have said because of the lack of judicial cooperation with China, Taiwan is unable to ask the Chinese to apprehend white-collar fugitives, making China a haven for white-collar fugitives.
Additional reporting by staff writer
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