Well-known chef James was sentenced to May and suspended for 2 years for false capital verification.

[Reporter Wu Shengru/Taipei Report] The well-known chef "James" (real name Zheng Jianke) was accused of false capital verification when he established the "Zhanjiang" company 10 years ago. The funds deposited into the capital account on the day of the capital verification were withdrawn the next day. He was prosecuted for violating company laws and other crimes. During the trial, James pleaded guilty and hoped for a lighter sentence and the opportunity for probation. The Shilin District Court recently concluded a trial and found James guilty of violating the company law by failing to pay shares. He was sentenced to five months in prison, suspended for two years, and had to pay 120,000 yuan to the state treasury.

The Shilin District Court recently concluded a trial and found James guilty of violating the company law by failing to pay shares. He was sentenced to five months in prison, suspended for two years, and had to pay 120,000 yuan to the state treasury. (Photo by reporter Wu Shengru)

According to the prosecutor's investigation, James established "Zhanjiang Co., Ltd." in Taipei City in September 2016. On the 19th of the same month, he deposited 1.54 million yuan, 160,000 yuan, and 300,000 yuan (a total of 2 million yuan) in the names of three people named Zhang, Su, and Weng respectively into Zhanjiang's capital account to provide capital verification. Unexpectedly, after the capital verification was passed, all the funds were remitted the next afternoon. After investigation, the prosecutor believed that James had committed the crime of false capital verification in accordance with the company law, and instituted a public prosecution in accordance with the law.

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At the first hearing of the Shilin District Court, James admitted the crime in court and said, "It's wrong to break the law. I'm really sorry." He hoped that the judge would consider the circumstances of his original crime and give him a lighter sentence. His defense lawyer also pointed out that James continued to operate Zhanjiang Company and did not cause harm. He did not know at the time that the capital amount could be adjusted downwards, so he borrowed money to verify the capital. He did not obtain illegal benefits after registration. It was not an economic crime of capitulating the company with false capital, fraud or emptying the company's assets. He asked the judge to adopt a summary judgment and give him a suspended sentence.

The judge believed that when James considered choosing to engage in commercial operations, he should abide by the company laws like other operators, make honest capital contributions according to the company's actual capital needs, and handle registration truthfully. However, he pretended that the receivables had been collected in full and used this to apply for company registration. This had hindered the accuracy of the company's registration and capital verification by the competent authorities, and violated the company law's normative purpose of maintaining the authenticity of the company's capital and transaction security. It may also increase the potential risks of counterparties in judging the company's capital.

After considering the fact that James confessed to the crime after committing the crime, and told the court and stated in court that the two parties had reached a settlement, reached a consensus on their disputes, and agreed to leniency; and considering the motivation, purpose, means, and false amount of the crime, James was sentenced to five months in prison, fined, and suspended for two years. The verdict determined that he must pay the treasury 120,000 yuan within six months.