Shi Chaoyi
In 761, the official Yan Zhuang (), who had previously served An but later submitted to Tang, was accused of having secret communications with Shi Chaoyi. After Yan was arrested, Liu sent soldiers to guard Yan's mansion, ready to seize it if Yan were found guilty. Yan, however, was soon exonerated, and became resentful of Liu. Yan therefore accused Liu of leaking contents of secret conversations that he had with Emperor Suzong. As a result of these counteraccusations, and also because the chancellor Xiao Hua was jealous of Liu's talents, both Liu and Yan were demoted — in Liu's case, to be the prefect of Tong Prefecture (通州, in modern Dazhou). His financial responsibilities were transferred to Yuan Zai.