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Viewing cable 05TAIPEI1526, MILITARY OFFICERS INVOLVED IN HUMAN TRAFFICKING AND

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Reference ID Created Released Classification Origin
05TAIPEI1526 2005-03-31 00:31 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY American Institute Taiwan, Taipei
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 TAIPEI 001526 
 
SIPDIS 
 
DEPT PASS AIT/WASHINGTON 
DEPT FOR INL/AAE AND EAP/TC 
BEIJING PASS CHENGDU 
HONG KONG FOR DHS 
 
SENSITIVE 
 
FROM AIT KAOHSIUNG BRANCH OFFICE 
 
E.O. 12958: N/A 
TAGS: SNAR KCRM ASEC TW TIP
SUBJECT: MILITARY OFFICERS INVOLVED IN HUMAN TRAFFICKING AND 
LOAN-SHARKING SCANDAL 
 
Sensitive but Unclassified - Please protect accordingly. 
 
1.  (SBU) Summary:  A year-long investigation into a illegal 
loan-sharking operation run by two Taiwan Army officers has 
resulted in a number of arrests and revealed additional 
involvement in prostitution, human trafficking and illegal 
weapons sales, according to local prosecutors.  Kaohsiung 
prosecutors provided AIT/K with details of the charges, but 
said the investigation continues and they anticipate further 
evidence of the ring's involvement in a range of illegal 
activities.  End summary. 
 
2.  (SBU) Prosecutor Lo Shui-lang of the Kaohsiung 
Prosecutors' Office confirmed to AIT/K on March 29 local 
media reports of arrests of two Taiwan Army officers for 
loan-sharking and other crimes.  He noted that the arrests 
had come after an investigation that had lasted over one 
year.  The investigation had begun in late 2003 after Tainan 
authorities arrested a suspect for illegal possession of a 
handgun in an arms sales investigation and the suspect had 
confessed and provided information to a loan-sharking and 
smuggling ring that involved military officers. 
 
3.  (SBU) The subsequent investigation had finally 
identified Taiwan Army Major Chang Shou-chung as a leader of 
the ring.  Chang had opened pawnshops in southern Taiwan to 
serve as fronts for underground illegal loans to his Army 
colleagues as well as individuals in local criminal gangs. 
Addition evidence indicated that Chang also had sold a 
modified pistol and some bullets to another suspect, Taiwan 
Army Captain Lee Yi-hung.  Local law enforcement authorities 
arrested Chang and Lee on March 27. 
 
4.  (SBU) Searches of Chang Shou-chung's residence turned up 
account books which indicated that, in addition to the loan- 
sharking operation, Chang was involved with smuggling rings 
that trafficked foreign women for prostitution purposes. 
While so far Chang has only admitted to involvement in one 
case of trafficking women for prostitution, prosecutors 
believe he was involved in many more.  Chang admitted 
involvement in one recent case in which three Mainland 
Chinese women had been found engaging in prostitution and 
had been repatriated to China.  Confronted with evidence of 
ties to this case, Chang had admitted that he had brought 
the three to Taiwan using sham marriages, working with a 
criminal in China named "Duan", and had forced the three 
into prostitution.  Chang said he had earned NT2,400 for 
each customer the three women served.  After police had 
stumbled onto the women and sent them back to China, Chang 
told prosecutors, he had had to reimburse the smuggling ring 
NT 400,000 (USD 13,000) for losses. 
 
5.  (SBU) Chang and his cohorts are also being investigated 
for involvement in illegal weapons sales.  While conducting 
a search at Captain Lee's residence, law enforcement 
officials seized some stolen chambers and firing mechanisms 
for M-16 rifles, which Lee claimed he had bought from Chang. 
The military determined that the parts had been used in the 
local manufacture of automatic weapons. 
 
6.  (SBU) Prosecutor Lo told AIT/K that the investigation 
into all aspects of the cases continued.  Lo said that the 
cases were initiated by Tainan Police, but had been passed 
to the Kaohsiung Prosecutors Office because the suspects' 
residences and criminal activities took place in Kaohsiung. 
Lo added that the cases of the two suspects have been split, 
with Lee being handled by the Army's military justice system 
and Chang, who was to retire on April 1, by the Kaohsiung 
Prosecutor's Office.  The split in the cases was because Lee 
was active duty and, in addition to other charges, has been 
charged with theft of military ammunition and weapons parts. 
Chang, on the other hand, is primarily charged with illegal 
loan sharking, trafficking in persons, and arms sales, all 
of which would normally fall under the jurisdiction of 
public prosecutors' offices. 
 
7.  (U) AIT/K will continue to follow developments in the 
cases, especially with regard to organized trafficking in 
persons. 
 
Forden 
 
Paal