Kaohsiung Dental Chain Faces Massive fraud,Money Laundering Charges
KAOHSIUNG,Taiwan - Twenty-six individuals connected to the Abc Dental Group in Kaohsiung have been indicted on charges including fraud,money laundering,tax evasion,and employing unlicensed dentists,prosecutors announced Wednesday. The alleged crimes generated an estimated NT$1.6 billion (US$51 million) in illicit profits.
The Kaohsiung District Prosecutors Office began investigating the group in 2016, initially focusing on four founders – two dentist brothers surnamed Hsieh (謝), their sister who managed finances, and a man surnamed Chen (陳) who served as chief of operations – after receiving reports of unlicensed practitioners. The examination subsequently broadened in scope.
Between 2019 and 2023, the Abc Dental Group allegedly employed 17 dentists without licenses to perform procedures on over 30,000 patients, including fillings, cleanings, and extractions. These unlicensed services generated NT$57.1 million in illegal profits for the company, of which NT$46.95 million was reportedly obtained thru fraudulent claims to the National Health Insurance (NHI) system.
Prosecutors allege the Hsieh siblings implemented policies designed to evade taxes, including cash payments to dentists, failure to issue receipts for self-paid procedures, and centralized tax reporting through the company’s headquarters. The group is also accused of laundering illicit funds through methods such as cross-shareholdings, investments in funds and currencies via front companies, and the purchase of six real estate properties subsequently leased to the dental clinics.
Raids conducted in August and December of last year led to the recovery of NT$35.54 million in funds the suspects agreed to return, along with the seizure of NT$7.7 million from front companies and properties valued at over NT$532 million. Prosecutors have petitioned to seize a total of NT$1.695 billion in funds linked to the alleged money laundering, tax evasion, and NHI fraud.
Of the 26 indicted, 17 were granted bail ranging from NT$200,000 to NT$10 million. Seven were released upon agreeing to repay their illicit gains,and two were released without bail.
