BOD Group, a leading player in Taiwan’s rental management and subletting industry, has been rocked by a major financial scandal at one of its affiliated companies. Lee Chien-cheng, the former chairman of BOD Property Management, is accused of raising over NT$1 billion (approximately $31.0 million) through corporate bonds issued by Zhao Ji Investment and Hermit Crab Management Consulting, then misappropriating nearly NT$700 million (approximately $21.7 million) of those funds to purchase luxury cars, designer goods, and repay personal debts. After the Taipei District Prosecutors Office directed the Investigation Bureau to conduct searches and interrogations, the Taipei District Court ruled on the morning of the 8th to detain Lee, though without restricting visitation and communication rights.
This incident has not only severely damaged investor confidence but has also unexpectedly embroiled the second-largest shareholder, Acer. Lee Wen-hsiang, the corporate representative appointed by Acer to serve as chairman of BOD Property Management, resigned from all positions—including chairman, corporate director, and general manager—on the evening of the 7th, just two days after taking office, citing the discovery of significant internal management deficiencies. This abrupt departure adds another layer of turmoil to the unfolding storm.
Over NT$1 Billion Raised, Then Defaulted; Former Chairman Accused of Embezzlement
According to the investigation, the corporate bonds issued by Zhao Ji Investment, where Lee Chien-cheng served as the responsible person, and Hermit Crab Management Consulting, where Lin You-jen was the nominal head, recently defaulted on scheduled principal and interest payments. On the morning of the 7th, the Taipei District Prosecutors Office directed the Ministry of Justice’s Investigation Bureau Northern Regional Mobile Station to execute search warrants at six locations, including the residences of Lee and Lin, as well as the offices of BOD Property Management, Zhao Ji Investment, and Hermit Crab. Both Lee and Lin were summoned for questioning.
After questioning, prosecutors determined that Lee was a major suspect for crimes including embezzlement and breach of trust, and there was a risk of evidence tampering and flight. He was arrested on the spot, and prosecutors petitioned the court for detention with restricted visitation. Following a detention hearing on the morning of the 8th, the Taipei District Court ordered Lee detained but did not impose a communication ban. Lin You-jen was released on NT$2 million bail (approximately $62,044).
According to media reports, when Lee was transferred to the prosecutors’ office for further questioning on the evening of the 7th, he wore a mask and remained silent as reporters asked, “Did you use that money to buy luxury cars?” and “You bought your wife many designer bags, right?” However, his attire—a Blvck Paris collaboration T-shirt with artist Basquiat, priced at NT$5,380, and black-and-white ALO sneakers—unexpectedly became the focus of the transfer footage, causing heartache for many investors.
Internal Employees Also Victims; One Staff Member Lost NT$20 Million
Signs of the corporate bond storm had emerged even before the investigation began. A female employee surnamed Liu posted a lengthy message in an investor group on August 2, revealing that she had invested a total of NT$20 million (approximately $620,444) in principal across Zhao Ji Investment and Hermit Crab Management Consulting, and had even transferred additional funds as recently as July 24. She stated that Lin You-jen had recently told employees that “the big boss, Lee Chien-cheng, said he’s going to run, and the money probably can’t be repaid,” adding that Lin claimed he had already turned himself in for assisting Lee in misappropriating funds and breach of trust.
Ms. Liu said she only sought legal counsel and prepared to take legal action after confirming that a client scheduled to receive a payout on July 30 had not been paid. She visited BOD’s headquarters in person on July 31 but could not get a clear answer on whether payments would be made on time. It wasn’t until the afternoon of August 2 that she received a call from Zhao Ji Investment informing her that Lee wanted to discuss a compensation plan with investors.
Self-Help Group Identifies 187 Victims; Lee Proposes Stock-Based Compensation
Investors have formed a self-help group, identifying 187 victims so far, with individual investments ranging from NT$500,000 (approximately $15,511) to tens of millions of dollars. Some hold bonds from only one of the companies, while others invested in both. Lee has claimed that the number of affected individuals is around 300 and the total amount is close to NT$10 billion (approximately $310.2 million), though these figures have yet to be verified.
After the funding issues surfaced, Lee personally met with investors and proposed a compensation plan involving approximately 16,000 lots of unlisted BOD Property Management shares, valued at NT$70 per share, for a total value of about NT$1.12 billion (approximately $34.7 million), in hopes that investors would temporarily refrain from filing lawsuits. The entire conversation, lasting about 24 minutes, was recorded. The self-help group has prepared a verbatim transcript to be submitted to lawyers and judicial authorities for clarification.
According to the recording, Lee admitted that the company had suffered “investment failures,” not merely a short-term liquidity issue, and that he had been aware of a funding gap since at least April of this year. Lin You-jen, who was actually responsible for managing the funds, had consulted a lawyer at the time and was advised to turn himself in. However, investors questioned why the company continued to raise funds and issue corporate bonds between May and July. Lee did not deny this, only stating that he had expected approximately NT$100 million (approximately $3.1 million) in funds to flow back in early July.
Investors emphasized that BOD Property Management was not the issuer of these corporate bonds and is not currently a listed company. If it fails to successfully launch an IPO in the future, investors may still be unable to recover their funds. The self-help group has sought assistance from a legal team to evaluate filing criminal complaints, pursuing civil claims, and applying for asset preservation measures such as provisional attachment and injunctions to prevent the transfer of related assets. They will also investigate whether those involved are liable for fraud, breach of trust, or violations of Taiwan’s Banking Act.
Acer Representative Resigns After Just Two Days, Exposing Internal Management Flaws
Another dramatic twist in this storm involves the second-largest shareholder, Acer. BOD Property Management recently held a board meeting where Acer’s corporate representative, Lee Wen-hsiang, was appointed chairman and concurrently served as general manager. However, on the evening of the 7th, Acer issued a major announcement stating that after assuming the chairmanship, Lee Wen-hsiang discovered internal management deficiencies at BOD Property Management. Consequently, he resigned as chairman and corporate director of BOD Property Management effective August 7, 2026. The designated corporate director representative also resigned on the same day, and Lee Wen-hsiang simultaneously stepped down as general manager.
From appointment to resignation, Lee Wen-hsiang spent just two days as chairman of BOD Property Management, a move that has drawn intense external scrutiny and brought the company’s corporate governance issues to the forefront.
BOD Property Management had earlier announced on its official website that Lee Chien-cheng had resigned from all company positions on July 29, and that the board had elected a new chairman on July 30 to ensure a swift transition in the governance and management of business, financial, and administrative affairs. The company emphasized that BOD Property Management is an independent corporate entity established in accordance with the law, with independent operational mechanisms for finance, accounting, capital, and operational management, and that client rights would not be affected. However, with Lee Wen-hsiang’s swift resignation, the persuasiveness of this statement is likely to be significantly undermined.
Flow of Funds Remains a Mystery; Prosecutors Investigate Potential Wrongdoing
Prosecutors are now actively tracing the actual flow of the nearly NT$700 million in investment funds. Media reports indicate that Lee Chien-cheng is suspected of using the raised funds to purchase luxury cars and designer goods, with some used to buy designer bags and jewelry for his ex-wife, as well as to repay personal debts. The investigation will continue to delve into the flow of investment funds within BOD-related entities, the actual use of the funds, and whether the process of issuing corporate bonds and subsequent fund scheduling by Zhao Ji Investment and Hermit Crab Management Consulting involved any illegal activities.
With Lee Chien-cheng detained by court order, Acer’s representative swiftly severing ties, and the investor self-help group actively coordinating legal action, this storm—spanning the rental management industry and the capital markets—is unlikely to subside in the short term.