TAIPEI (BNO NEWS) -- Taiwan former president Lee Teng-hui was indicted Thursday on charges of embezzlement of state funds and money laundering during his tenure in office from 1988 to 2000.

Taiwan's national news agency, the Central News Agency, reported that one of Lee's close aides, Liu Tai-ying who was the founder of the Taiwan Research Institute, was also indicted. Lee, 88, and Liu are accused of embezzling $7.79 million dollars in national security funds when Lee was in office.

Prosecutors said in the indictment that Lee used the money to fund the Taiwan Research Institute, a private think tank to be headed by Liu. According to the statement, Lee and Liu violated the Anti-Corruption Act, the Money Laundering Control Act and the Criminal Code.

In the indictment, however, the prosecutors did not seek a jail sentence for either of the accused. The charges against Lee could carry a 10-year prison sentence, if he is convicted, but because of his advanced age the sentence could be lighter.

Lee, Taiwan's first directly elected leader, denies the charges.

He is the second former Taiwanese president to be charged with fraud. Lee's successor Chen Shui-bian is currently serving a 17-year jail term for corruption and embezzlement.

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