Relevant Legal Provisions

Article 335, Paragraph 1 of the Criminal Code: A person who, with the intent of unlawfully possessing for himself or for a third person, misappropriates property belonging to another that he lawfully possesses, shall be sentenced to imprisonment for not more than five years, detention, or a fine of not more than NT$30,000, or a combination thereof.

Article 339, Paragraph 1 of the Criminal Code: A person who, with the intent of unlawfully possessing for himself or for a third person, by means of deception causes another to deliver his own property or the property of a third person, shall be sentenced to imprisonment for not more than five years, detention, or a fine of not more than NT$500,000, or a combination thereof.

Facts and Reasons

The defendant (i.e., the client of our firm) invested in the complainant's company. In addition, the complainant borrowed a substantial sum of money from the defendant. To avoid subsequent disputes, the complainant provided a check to the defendant as security. Unexpectedly, the defendant was accused by an uninvolved third party of fraud and embezzlement.

Prosecutor's Disposition

With respect to the above-mentioned defendant in connection with the fraud and related offenses, the investigation has been concluded, and it was determined that a non-prosecution disposition should be issued.

The defendant stated that he had previously invested in the complainant, and therefore the above-mentioned check was used as security. The complainant also stated that there was an outstanding debt at that time; thus, the defendant used the above-mentioned check as security for repayment. In summary, it is difficult to find that the defendant committed the crimes of embezzlement or fraud.

(Some details of the case have been adjusted or omitted to protect the parties' rights.)

Attorneys: Ian Yan