Last month, the website of the ruling party was breached allegedly by Chinese hackers and there were also security breaches leading up to the 2016 presidential elections.
"We indeed conducted a search of the CUPP headquarters and residence of the main suspects for possible violation of the political donations act," Chou Shih-yu, a spokesman for the Taipei District Prosecutors' Office, told AFP today.
Chou declined to provide further details as the investigation is ongoing.
Local media reported that authorities had been investigating since last September whether CUPP's finances originate from the Chinese government, which is against the law.
Chang claims his party's funds are all from his own company.
"My money doesn't come from any government... The money is from our own factory, our own company. How I use it is my business, not yours," he told reporters yesterday after the police search.
The police rounded up more than 300 suspected gang members in May, confiscating illegal weapons and drugs, in a sweep it said was aimed at preventing manipulation of island-wide local elections in November.
Chang was imprisoned for 10 years in the US for drug trafficking and then lived in exile for 17 years in China before returning to Taiwan in 2013.
The elections in November are seen as an important barometer of popular support for the ruling independence-leaning Democratic Progressive Party (DPP) or the China-friendly Kuomintang.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)