Kaohsiung Dental Chain Facesโ Massive fraud,Money Laundering Charges
KAOHSIUNG,Taiwan โข- Twenty-six individuals connectedโ to โthe Abc Dentalโ Group in โคKaohsiung have beenโ indicted on charges includingโฃ fraud,money laundering,taxโข evasion,and employingโ unlicensed dentists,prosecutors announced Wednesday.โค The alleged crimes generated an estimated NT$1.6 billion (US$51 million) in illicit profits.
The Kaohsiung District โProsecutorsโ Office began investigatingโข the group in 2016, initially focusing โon โฃfour founders – two dentistโฃ brothers surnamed Hsieh (่ฌ), their sister who managed finances, and a man surnamed โขChen (้ณ)โฃ who served as chiefโข of operations – โฃafter receiving reports ofโข unlicensed practitioners. The โฃexaminationโค subsequentlyโฃ broadened in scope.
Between 2019 and 2023, the Abc Dental Group โallegedly employed 17 dentists without licenses to performโ 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 whichโข NT$46.95 million was reportedly obtained thru fraudulent claims to theโข National Health Insurance (NHI) system.
Prosecutorsโ allege โthe Hsieh siblings โขimplemented policies designed to evade โฃtaxes, including cash payments to dentists, failure to issue receipts for self-paidโค procedures, andโค centralized taxโฃ reporting โฃthrough the company’s headquarters.โ The group is also accused ofโค laundering illicit โขfunds through methods such as cross-shareholdings, investments in funds and currencies via front companies, and the purchase of six real estate properties subsequentlyโฃ leased to the dental clinics.
Raids conducted in August and December ofโค lastโฃ year led to the recovery of NT$35.54 million in funds โฃthe โsuspects agreed to return, along with the seizure of NT$7.7 million from front companies and properties valuedโ at โover NT$532 million. Prosecutors have petitioned to seize aโ total of NT$1.695 billionโฃ in funds linked toโฃ the alleged money laundering, tax evasion, and NHI โฃfraud.
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.
