Lin Fuhui’s Travel Agency Troubles: A Construction Mogul’s Equity Nightmare

Taipei, Taiwan – In a developing story, Lin Fuhui (also known as Lin Xinhui) is under intense scrutiny following allegations of financial impropriety involving a travel agency acquisition. The case,which intertwines construction industry funds with private equity investments,has raised eyebrows and prompted investigations by authorities.

The Initial Investment: A Construction company’s Gamble

Reportedly, Lin Fuhui persuaded a construction industry figure, identified as Mr. Chen, to acquire an older construction firm. The pitch centered on a supposed investment opportunity. Mr. Chen then allegedly secured a US$13.8 million loan (approximately NT$400 million) to procure 20,000 private equity shares in a publicly issued company.

The situation escalated when the construction company’s assets were mortgaged. Approximately RMB 35 million was then used to purchase Fukang Travel Agency, setting the stage for further complications.

The Travel Agency Acquisition: A Deal Gone Sour

Following the acquisition, signs of financial instability began to surface. The acquired company exhibited unusual equity fluctuations and a sudden lack of funds. The Tourism administration ordered Fukang Travel Agency to cease operations earlier this month due to repeated issues with refunding customer payments.

This led to an emergency lawsuit, and the Taipei District Prosecutor’s Office has launched a full investigation into the matter. The investigation aims to determine whether the travel agency was deliberately drained of its assets.

How Lin Fuhui Allegedly orchestrated the Deal

According to sources, Lin Fuhui connected with Mr. Chen through a banking contact.She allegedly convinced him to take over the construction firm, touting it as a lucrative investment opportunity. She allegedly promised that the investment would allow Mr. Chen to lead the company and benefit from the construction company, creating a win-win situation.

post-Pandemic Tourism: A False Premise?

after COVID-19 restrictions eased, Lin Fuhui allegedly persuaded Mr. Chen that the tourism sector held notable potential. This pitch led to the acquisition of Fukang Travel Agency for RMB 35.38 million.

Following the purchase, a Mr. Xie was listed as the registered agent, with both xie and Mr. Chen serving as major shareholders.Lin Fuhui and Xie were then entrusted to manage the travel agency.

Red Flags and Legal Battles

Victims, also surnamed Chen, noticed irregularities in the shares of the companies jointly managed by Lin Fuhui. Suspicions of fraud led to formal complaints. In early June, the victim received notice of losses suffered by the travel agency combined with an inability to pay salaries.

The Tourism department announced that Fukang Travel Agency had repeatedly failed to refund bills and that its financial state was irregular.

Unanswered Questions and Ongoing Investigations

The timeline raises questions; Fukang Company had recently invested in a hot spring hotel’s operating rights in Japan. Why did the company suddenly face major losses and closure? Investigators will aim to determine if Lin Fuhui and others intentionally emptied Fukang Company assets.

Past Legal Troubles

Lin Fuhui has a history of legal entanglements. She was previously accused of creating fictitious debts amounting to 1.2 billion yuan. She was also connected to the debt distribution of Dayou Bus. During an earlier trial, she fled to China to evade the North Court.

Lin Fuhui later traveled to Jinan and then Thailand to hide. She was apprehended while in transit in Thailand, thanks to cooperation between local immigration authorities. The Criminal Bureau and Thai police worked together to extradite her back to Taiwan.

Additional Controversies

Beyond evading authorities, Lin Fuhui has faced lawsuits pertaining to debt.A luxury residence associated with her was auctioned. The auction attracted attention from real estate investors, including “Mama Liu”, who bid over 270 million yuan. This led to disputes over relocation, attracting considerable media attention.

What do you think about this case? Do you believe justice will be served and the truth will come to light?

For now, a judicial investigation is pending to uncover the full truth behind these events.

share your thoughts and comments below. What do you believe should be the next steps in this ongoing investigation?