The ruling in Taiwan's first criminal case against a former "president" scales back a lower court conviction on counts involving about $20 million that prosecutors say was illegally taken by Chen and his wife.
Last September, Taipei district court found Chen, 59, guilty of embezzling $3.15 million from a special "presidential" fund, receiving bribes worth at least $9 million and laundering money through Swiss bank accounts. He has been held in a suburban Taipei jail for 17 months.
Chen's lawyer said his client accepted the decision with mixed feelings.
"He was not pleased by the ruling and believes he should have been acquitted," said attorney Shih Yi-lin. "But he also believes he has a good chance with the next appeal, so he is not particularly upset."
Chen's next appeal will go to Taiwan's supreme court. If it upholds his conviction, he can launch a further appeal to the island's highest court, the council of grand justices. Chen could also be pardoned by Taiwan's incumbent leader, but only after the legal process against him has been exhausted.
Friday's high court ruling also upheld the graft conviction of former first lady Wu Shu-chen but cut her life sentence to 14 years.
The high court is now considering a separate request by Chen to be released pending his appeals. A ruling is expected some time before June 23, when his detention order expires.
Chen has steadfastly maintained his innocence, insisting he is the victim of efforts by current "president" Ma Ying-jeou to punish him for his pro-independence views.
Since replacing Chen two years ago, Ma has turned the corner on his predecessor's anti-mainland policies, moving rapidly to improve relations with Beijing.
Chen was first elected in 2000 in Taiwan's second direct presidential poll, breaking a half-century monopoly on power by the Kuomintang.
He was re-elected by a razor-thin margin in 2004 amid charges that an election eve assassination attempt against him was staged to garner sympathy among Taiwan's 23 million people. An official inquiry failed to substantiate the charges.
Chen became a polarizing figure during his last four years in office, alienating centrist voters with his pro-independence moves and causing much consternation in the United States, which feared he could push tensions with the mainland into open conflict.
He was also attacked over persistent rumors of official corruption involving his family and inner circle. Prosecutors opened an investigation shortly after he left office in May 2008 and indicted him six months later.
Over the past year, his Democratic Progressive Party has begun to recover from the tattered reputation he left it with at the end of his second term.
Fearing that overt expressions of support could rekindle voter antipathy, the party has kept its distance from him, though it has echoed charges that the judicial process against him is rigged.
AP - Reuters
(China Daily 06/12/2010 page2)