Post-presidency
Chen stepped down on May 20, 2008, the same day that Ma Ying-jeou took office as the new President of the Republic of China No longer bearing the title of President, Chen left the Presidential Office Building, his presidential immunity was removed. He was placed under restrictions, such as confinement to Taiwan, by prosecutors as a result of allegations of corruption and abuse of authority, both of which he was later charged guilty of. One fraud case involved the handling of a special presidential fund used to pursue Taiwan's foreign diplomacy.
President Ma Ying-jeou declassified government documents which aided the investigation into Chen's usage of special government funds. Chen's lawyers responded by suing Ma, on August 6, 2008, alleging Ma's declassification of the documents that were initially classified by Chen to be "politically motivated." The documents consisted mainly of receipts and other records of special expenses, which according to Ma's chief aide assured pose no danger to the country's interests once declassified.
On September 11, 2009, Chen received a life sentence and was fined NT$200 million (US$6.13 million) for embezzlement, bribery and money laundering involving a total of US$15 million (NT$490 million) in funds while in office from 2000 to 2008. Supporters of Chen contended that the prosecution was politically motivated. Chen is the first ROC president to receive a prison sentence.
On June 8, 2010, the Taipei District Court found Chen not guilty of embezzling diplomatic funds. On June 11, 2010, the High Court decided to reduce the former president Chen's life sentence to 20 years. Through several court cases and pleads for bail, the High Court rejected his request for bail and continued to detain him in jail for another 5 months. The detention led Chen's supporters to protest that the detention of Chen for more than 600 days without proving him guilty was illegal, inhumane and unjust, and a result of political revenge by the part of the Kuomintang (KMT). The Yellow Ribbon Movement took to demonstration over alleged exploitation of justice and political revenge.
Meanwhile, on August 17, 2010, both the Taipei District Court and the High Court found ex-deputy military minister, Cheng-Hen Ke (柯承亨), not guilty of revealing non-military secrets to former president Chen Shui-Bian.
The parliament with a KMT and pan-blue coalition majority passed an amendment to the Act Governing Preferential Treatment for Retired Presidents and Vice Presidents (卸任總統副總統禮遇條例) on August 19, 2010. Introduced by the KMT, the amendment stipulated that former presidents and vice presidents will be stripped of courtesy treatment, including their monthly allowance and annual expenses, if convicted by a court of grave offense(s), such as sedition and graft. The number of bodyguards assigned to former presidents and vice presidents who are convicted of corruption in a first trial will also be reduced. Former president Chen's son stated the act was created to target the now imprisoned former president. (陳水扁條款).
Read more about this topic: Chen Shui-bian