The Taichung District Court convicted Liu for his role in the Kuangsan Group scandal in July 2003, sentencing him to five years imprisonment and NT$30 million fine. His final appeal was heard by the Taiwan High Court in September 2004. The THC handed Liu a four-year prison sentence and a NT$30 million fine. After the High Court's verdict was announced, Liu resigned his legislative seat. At the time, Liu was at the Republican National Convention in the United States. While there, he suffered a heart attack and was not medically cleared to fly to Taiwan. Though Liu had relinquished his PFP membership a day after his resignation from the Legislative Yuan, the party offered to help him find medical treatment if he would serve his sentence in Taiwan. Liu never acknowledged the proposal, and was subsequently listed as a fugitive in February 2007. In the early 2010s, Liu was reported to have fled to China. Later, he returned to the United States, and died in Los Angeles on 18 November 2016, aged 84.