Confiscation in Fraud and Money Laundering Cases: Analysis of an Important Taoyuan District Court Judgment
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目錄
- 1. Case Overview
- 2. Basic Principles of Criminal Confiscation
- 3. Key Legal Findings of the Taoyuan District Court
- 4. The Proper Framework for Reviewing Confiscation
- 5. Application of the Principles in This Case
- 6. Why This Judgment Matters
- 7. Practical Implications
- 8. Legal Services Provided by Chien Sheng International Law Firm
- 9. Conclusion
In Criminal Judgments No. 1333 and No. 1350 of 2025, issued on June 12, 2026, the Taiwan Taoyuan District Court provided important legal analysis concerning the criminal confiscation regime.
The case involved a defendant accused of participating in fraud as an in-person cash-collection money mule. The defendant was alleged to have collected money directly from victims and then transferred the funds to other members of the alleged fraud organization.
The Court conducted a detailed analysis of how confiscation should be applied in such cases, offering significant guidance for criminal practice. Chien Sheng International Law Firm summarizes the key legal issues and implications of this important judgment below.
1. Case Overview
1. The Defendant’s Alleged Role
The defendant was accused of joining an organization allegedly engaged in fraudulent activity and serving as an in-person cash-collection money mule.
In fraud cases, this term generally refers to a person who directly receives cash from victims on behalf of the organization. Such individuals are often positioned at a relatively low level of the operation and may have limited knowledge of the organization’s overall structure or the ultimate destination of the funds.
2. The Alleged Conduct
The defendant was accused in two fraud and money laundering incidents.
In the first incident, the defendant was alleged to have collected NT$2.12 million in cash from Victim A. Other alleged members of the fraud organization had told Victim A that profits could be earned by investing in shares of an unlisted company. After Victim A was deceived, the defendant allegedly followed instructions from the organization and collected the cash at a location in Taoyuan before immediately transferring it to another person.
In the second incident, the defendant was alleged to have collected NT$700,000 from Victim B. The alleged fraud organization had falsely represented that Victim B could profit by investing in gold futures. The defendant allegedly collected the cash at a 7-Eleven convenience store and likewise immediately handed it over to an upstream member.
3. Judgment
The Court found the defendant guilty and imposed a sentence of three years and two months of imprisonment.
With respect to confiscation, however, the Court ordered recovery only of the criminal proceeds that the defendant had personally obtained.
The amounts that had already been transferred to other persons were not confiscated from the defendant, nor was the defendant ordered to pay an equivalent amount in value.
2. Basic Principles of Criminal Confiscation
1. What Is Confiscation?
Confiscation is a legal mechanism through which property connected to criminal activity may be transferred to the State in accordance with law.
One of its principal purposes is to deprive offenders of unlawful gains obtained through criminal conduct and prevent continued enjoyment or use of those proceeds.
2. Legal Basis for Confiscation
Under Articles 38 and 38-1 of the Criminal Code, property potentially subject to confiscation may include criminal proceeds and certain property connected with the commission of an offense.
Criminal proceeds include money or property obtained directly or indirectly through criminal activity, such as funds obtained through fraud.
Property used in or generated by an offense may also be subject to confiscation where the statutory requirements are satisfied, such as forged documents or other items used to facilitate criminal conduct.
3. Confiscation and Value Recovery
Where identifiable criminal proceeds or property still exist and are available for confiscation, the Court may order confiscation of the property itself.
Where the original property has been lost, transferred, consumed, commingled, or otherwise cannot be confiscated in its original form, the law may instead permit recovery of the equivalent value.
3. Key Legal Findings of the Taoyuan District Court
The most important aspect of this judgment is its detailed discussion of the proper framework for determining confiscation.
The central question identified by the Court was:
Against whom should confiscation actually be ordered?
Finding 1: Identifying the Proper Person Subject to Confiscation
The Court emphasized that the key issue is who, at the time of judgment, has ownership or actual power of disposition over the property to be confiscated.
Under Article 38-3, Paragraphs 1 and 2 of the Criminal Code, the person against whom confiscation is ordered should be the person who, at the time of judgment, possesses ownership or actual power of disposition over the property.
Only by ordering confiscation against such a person can the legal effect of transferring ownership or other relevant rights in the property to the State properly arise.
This reasoning is significant because it differs from an approach sometimes seen in practice, where confiscation may first be ordered against a defendant and then reduced or waived on the ground that full confiscation would be excessively harsh.
According to this judgment, if the defendant no longer owns or controls the property at the time of judgment, the analysis should begin by asking whether the defendant is the proper person against whom confiscation may be ordered at all.
Finding 2: Separate Confiscation Among Co-Offenders
In cases involving multiple co-offenders, criminal proceeds may be distributed among several participants.
The Court held that confiscation should be determined according to the ownership or actual power of disposition held by each individual participant.
If the distribution of criminal proceeds among co-offenders is clear, each person should be subject to confiscation or value recovery only with respect to the portion over which that person independently holds ownership or actual power of disposition.
➡︎ For example, if an alleged organizer receives NT$500,000 and a money mule personally receives NT$100,000, the confiscation analysis should ordinarily distinguish between those respective amounts.
Finding 3: Joint Confiscation
Where several co-offenders jointly possess ownership or actual power of disposition over criminal proceeds, and their respective shares cannot be clearly distinguished, joint confiscation may be appropriate.
However, a co-offender who does not share such joint ownership or joint power of disposition should not automatically be included in a joint confiscation or value-recovery order.
Finding 4: Special Issues in Money Mule Cases
The judgment paid particular attention to confiscation in fraud and money laundering cases involving money mules.
In some previous cases, courts had ordered a money mule to repay proceeds that had already been transferred to another person, and then considered reducing or waiving that amount on the ground that full recovery would be excessively harsh.
The Taoyuan District Court questioned this approach.
If the money mule has already lost ownership and actual power of disposition over the funds, the Court reasoned that the first question should be whether value recovery can legally be ordered against that person at all.
Instead, confiscation or value recovery should be directed toward the person who actually possesses the relevant ownership or power of disposition, where that person can be identified and the statutory conditions are satisfied.
The Court therefore emphasized that whether value recovery should be ordered against a money mule cannot be answered categorically. The proper confiscation framework must first be clarified.
4. The Proper Framework for Reviewing Confiscation
According to the judgment, a court should generally proceed through the following analytical steps before ordering confiscation.
Step 1: Identify the Property Subject to Confiscation
The Court must first determine which property constitutes criminal proceeds or other property legally subject to confiscation.
Step 2: Identify the Owner or Person with Actual Control
The Court should then determine, based on the evidence in the record, who owns the property or possesses actual power of disposition over it at the time of judgment.
Step 3: Determine Whether the Statutory Requirements Are Satisfied
The Court must then consider whether confiscation against that owner or person with control satisfies the requirements of the Criminal Code.
Step 4: Determine the Form of Confiscation
Finally, the Court should determine whether confiscation should be ordered separately against one person or jointly against multiple persons.
5. Application of the Principles in This Case
1. Criminal Proceeds Personally Obtained by the Defendant
In the first incident, the defendant collected NT$2.12 million from Victim A but stated that he personally received only NT$3,000, while the remaining funds were immediately transferred to others.
The Court found that the NT$3,000 constituted criminal proceeds personally obtained by the defendant and also constituted property involved in the money laundering conduct.
➡︎ Because the NT$3,000 had not been seized and could no longer be specifically identified due to commingling, the Court ordered recovery of its equivalent value.
In the second incident, the defendant collected NT$700,000 from Victim B and personally received NT$4,000.
However, the defendant had already paid NT$4,000 to Victim B as part of a settlement. Accordingly, there was no remaining amount that required confiscation or value recovery.
2. Funds Already Transferred to Others
The Court did not order confiscation or value recovery against the defendant for the amounts that had already been transferred to other people.
■ First, the defendant no longer had ownership or actual power of disposition over those funds after handing them over.
■ Second, the identity of the current owner or person in control of the funds was unclear.
■ Third, because the funds had not been seized, their current location and ownership could not be determined from the evidence.
Accordingly, the Court concluded that the defendant should not be ordered to pay the equivalent value of those transferred funds.
The Court also considered it inappropriate, in this particular proceeding, to determine whether confiscation or value recovery should instead be ordered against unidentified persons other than the defendant.
6. Why This Judgment Matters
1. Preventing Confiscation Against the Wrong Person
By emphasizing ownership and actual power of disposition, the judgment helps prevent confiscation orders against persons who no longer possess or control the relevant property.
This issue is particularly important in fraud cases involving money mules, who may receive funds only temporarily before transferring them to others.
2. Promoting Fair and Legally Grounded Confiscation Decisions
The judgment requires courts to identify the proper person against whom confiscation should be ordered before considering the amount or scope of confiscation.
This creates a more structured and legally grounded approach to determining confiscation.
3. Improving Predictability
A clearer analytical framework allows defendants, attorneys, prosecutors, and courts to better anticipate how confiscation issues should be addressed.
Rather than treating every participant as automatically responsible for the entire flow of criminal proceeds, the analysis focuses on actual ownership and control.
4. Refining Taiwan’s Criminal Confiscation System
The judgment also reflects the continuing development of Taiwan’s criminal confiscation system.
It demonstrates the courts’ effort to balance effective deprivation of criminal proceeds with the protection of property rights and procedural fairness.
7. Practical Implications
1. Understand Confiscation Issues Early
Confiscation can be one of the most significant financial consequences in a criminal case.
Defendants should therefore understand at an early stage whether the prosecution is seeking confiscation of specific property or recovery of its equivalent value.
2. Preserve Evidence of Ownership and Control
Evidence showing who actually owned, received, transferred, controlled, or benefited from criminal proceeds can be critical.
Relevant evidence may include bank records, transfer records, communications, receipts, witness statements, and other documents showing the movement and control of funds.
3. Present a Clear Legal Argument
Where a defendant no longer owns or controls the proceeds, counsel may argue that the defendant is not the proper person against whom confiscation or value recovery should be ordered.
The focus should remain on the statutory requirements and the evidence concerning actual ownership and power of disposition.
4. Seek Professional Legal Assistance
Confiscation issues frequently involve complex questions of criminal law, property rights, co-offender liability, and evidentiary proof.
Professional legal assistance can help determine the proper scope of confiscation and develop an appropriate defense strategy.
8. Legal Services Provided by Chien Sheng International Law Firm
If you are involved in a criminal case in which confiscation or value recovery is at issue, Chien Sheng International Law Firm can assist with the following matters.
Service 1: Confiscation Law Consultation
Our attorneys can explain the applicable confiscation rules and analyze how recent court decisions may affect your case.
Legal advice can be tailored to the specific facts, property involved, and procedural stage.
Service 2: Evidence Collection and Analysis
We can assist in identifying and analyzing evidence relevant to ownership, control, receipt, transfer, and disposition of property.
This may include financial records, transaction histories, communications, and other materials relevant to the confiscation analysis.
Service 3: Legal Arguments and Criminal Defense
Our attorneys can develop legal arguments concerning the proper scope of confiscation or value recovery and present those arguments during criminal proceedings.
Where appropriate, the reasoning in relevant court decisions may be incorporated into the defense.
Service 4: Representation in Confiscation-Related Proceedings
We can provide representation in confiscation-related matters at different stages of criminal proceedings, including first-instance proceedings, appeals, and other available legal remedies.
9. Conclusion
The Taiwan Taoyuan District Court Criminal Judgments No. 1333 and No. 1350 of 2025 provide important guidance concerning the application of Taiwan’s criminal confiscation regime.
The judgment emphasizes the importance of identifying who actually possesses ownership or actual power of disposition over property before confiscation or value recovery is ordered.
The central principle is that confiscation should be directed toward the person who legally owns or actually controls the criminal proceeds, rather than being imposed automatically on a defendant merely because the defendant once handled the funds.For defendants accused of acting as money mules in fraud and money laundering cases, this distinction can be particularly important.
Where a defendant has already transferred the funds and no longer possesses ownership or actual power of disposition, whether confiscation or value recovery may still be ordered against that defendant must be carefully examined under the applicable statutory framework and evidence.
If you are involved in a criminal case concerning confiscation, criminal proceeds, fraud, or money laundering, Chien Sheng International Law Firm can assist in reviewing the evidence, analyzing ownership and control of the disputed property, and developing an appropriate legal strategy to protect your lawful rights and interests.Chien Sheng International Law Firm
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