Arrested Zhengsheng Society Directors in $50M Fraud Scandal – Latest Updates

[Yahoo News Report]The police recently arrested four directors of the Zhengsheng Society and wanted three directors out of Hong Kong, including the principal of Zhengsheng College, Chen Zhaozhuo, on suspicion of false statements and conspiracy to defraud, involving a total amount of NT$50 million. The police pointed out that the principal of Zhengsheng College once claimed that the school was in financial difficulty and solicited donations from outside. However, after investigation, it was found that the donations were not used for educational purposes. Instead, a large amount was transferred out of Hong Kong and even transferred to the director’s private account. The police severely condemned people who used false statements to induce the public to donate and then misappropriated the money, saying they would investigate whether anyone used the donations to line their own pockets.

The three directors of the Zhengsheng Society wanted by the police include Chen Siu-chiu, principal of Zhengsheng College, Lin Heisheng, supervisor of Zhengsheng College, and Chen Youzhi, director of Zhengsheng Society.

The police have notified the Anti-Narcotics Division of the Security Bureau, the Education Bureau, and the Social Welfare Department, and various departments have actively followed up to ensure that the welfare of those who are undergoing drug treatment in the Ching Sang Association and the students of the Ching Sang College is taken care of. In addition, the police said that in addition to committing criminal offenses, the Zhengsheng Association, as a local charity, was exempted from paying taxes. Instead, the directors transferred a large amount of funds overseas, which may have violated the tax exemption requirements of Section 88 of the Inland Revenue Ordinance. The police will report to Relevant departments will follow up.

“Yahoo News” has asked Chen Zhaozhuo if he has responded, and a reply is awaited.

The police recently arrested four directors of the Zhengsheng Society and wanted three out-of-Hong Kong directors, including Chen Zhaozhuo, the principal of Zhengsheng College, on suspicion of false statements and conspiracy to defraud, involving NT$50 million. (Screenshot of police live broadcast)

The police recently arrested four directors of the Zhengsheng Society and wanted three out-of-Hong Kong directors, including the principal of Zhengsheng College, Chen Siu-chou (pictured), on suspicion of making false statements and conspiracy to defraud.

Chen Zhaozhuo, principal of Zhengsheng College

The police handed over the case at 3 pm today (18th). Acting Senior Superintendent of the New Territories South Region (Crime Division) Yiu Wing-chin said that the police received a report at the end of 2023 that the accounts of the Christian Christian Church Hong Kong Limited (referred to as the “Ching Sang Church”) were in chaos and that someone was suspected of misappropriating donations from the public. Lining one’s own pockets. Christian Ching Sang College Limited (Ching Sang College) is a subsidiary of the Ching Sang Association.

Yao Yongqin pointed out that from October to December 2020, someone raised funds in the name of Zhengsheng College, claiming that Zhengsheng College was financially strapped, provided false donation figures, and asked the public to donate large amounts. However, after police investigation, it was discovered that from 2020 to 2023, a director of the Zhengsheng Association transferred a large amount of the association’s bank deposits in Hong Kong out of Hong Kong, and did not use the charity funds for educational purposes as advertised, which was suspected of making false statements. and conspiracy to defraud. The Criminal Division of the New Territories South Region of the Police launched an enforcement operation on January 17 and 18, arresting four men aged between 34 and 77 who were directors of the Ching Sang Association, and wanted three directors who had left Hong Kong.

Police: Claiming to be in financial difficulty and raising funds, but income actually increased

Chief Inspector Yu Bo-han of the New Territories South Region (Crime Division) said that police investigation found that from October to December 2020, one of the persons involved, as the principal of Zhengsheng College, launched a fundraising campaign on Facebook accounts and mass media, claiming that Zhengsheng College’s donations “have hit a new low” and it needs donations from the public. He also claimed that all the funds raised would be used for the educational purposes of Zhengsheng College, and called on the public to participate in the “Zhengsheng Student Aid Scheme” with the aim of raising NT$300,000 every month to support the operation of Zhengsheng College.

However, according to police investigation, before the above-mentioned fundraising plan was launched, the amount of money received by the Zhengsheng Association had been increasing, and this was not a financial difficulty as claimed by the person involved. Yu Bohan said that Zhengsheng College has always relied on funding from the Zhengsheng Association for its operations. “But surprisingly, during this period, the funding received by Zhengsheng College from the Zhengsheng Association actually recorded an abnormal decline. This is inconsistent with what was said during the fundraiser. Huge discrepancy.” Police described the phenomenon as highly unusual.

Zhengsheng College raised 45 million yuan and received less than 10%

Yu Bohan continued that police investigation revealed that the Zhengsheng Association raised a total of 45 million yuan in donations in 2020, but the final allocation received by Zhengsheng College accounted for less than 10% of the total. In addition, some of the donation accounts of the Zhengsheng Society have had more than 300 large-scale fund movements between 2020 and 2023, including transfers to more than 10 bank accounts under the Zhengsheng Society, and privately held by the directors of the Zhengsheng Society and the principal of Zhengsheng College. of 3 bank accounts, these fund movements include asset purchases and sales.

Police: The person involved in the case sold his property before soliciting donations

In addition, Zhengshenghui’s account remitted a large amount of funds overseas through 13 remittances from 2022 to 2023, involving more than 50 million yuan. The police pointed out that some of the directors involved left Hong Kong after the incident, and some even organized their personal assets half a year before the fundraising event. After completing the fundraising, “on the one hand, they transferred the funds of the Zhengsheng Association and on the other hand, they sold their properties themselves.” emigrate.” The police believe that someone, as a director of the Zhengsheng Society, was involved in a conspiracy to commit fraud and made false statements to induce the public to donate.

The police also searched multiple addresses, including addresses related to the Zhengsheng Association, the residences and offices of the arrested persons, and the auditing company of the Zhengsheng Association, and seized organizational operation and employee information, bank documents and accounts, electronic storage devices, etc. The police also said that they had taken “necessary measures” against the bank accounts of the Zhengsheng Association and the directors of the Zhengsheng Association, hoping to prevent citizens’ donations from being remitted.

When asked whether the public should continue donating to Zhengsheng College, Yao Yongqin pointed out that this law enforcement operation is not aimed at the normal operation of Zhengsheng College. People are free to donate, but the police’s action is to ensure that donations will not be misappropriated. He emphasized that the police We will continue to monitor and announce if there is any fraud in anyone’s fundraising efforts.

The police arrested four directors of the Zhengsheng Association for conspiring to defraud 50 million, and wanted three people including the principal of Zhengsheng College, Chen Zhaozhuo. The police pointed out that from October to December 2020, someone involved in the case, as the principal of Zhengsheng College, launched a fundraising campaign on Facebook and mass media, claiming that donations to Zhengsheng College had “dropped to a new low” and needed public donations, and called on the public to participate “Zhengsheng Student Aid Scheme”. The picture shows Chen Zhaozhuo’s Facebook post on October 27, 2020.

Chen Zhaozhuo, the principal of Zhengsheng College, is wanted on suspicion of conspiracy to commit fraud. In October 2020, he raised donations and called on the public to participate in the “Zhengsheng Student Aid Program.” The picture shows a Facebook post in December of that year. The police said they would investigate whether anyone used the donations from Zhengsheng College to enrich themselves.

The police arrested four directors of the Zhengsheng Association for conspiring to defraud 50 million, and wanted three people including the principal of Zhengsheng College, Chen Zhaozhuo. (Screenshot of police live broadcast)

2024-01-18 08:57:16
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