Shen Chen-Nan was the first president of the Taiwan Sugar Company in 1946. He was appointed to Taiwan to take over all the Japanese sugar companies by the National Resource Committee of the Ministry of Economy in 1945. He was a capable leader and had reconstructed all the 35 factories in two years and increased the production of sugar from 80,000 tons to 630,000 tons, thus directly reviving the sugar business on the island, and indirectly laying a solid foundation for the development of economy for the future. However, in Jun 1950, he was suspected of collaborating with the Communists, arrested as a “traitor,” and executed in January 1951 finally. Based on the files and archives in Ministry of National Defense and Public Security Headquarters of Taiwan, this paper tries to argue that Shen's charge was totally wrong. A confession letter written by the informant, a worker in the sugar company, later admitted that he had done the wrong thing. In fact, the case was a grievance and tragedy deliberately arranged from the top during the “white terror period,” and Mr. Shen was an innocent victim in the battle between the Nationalist government and the Communists. Shen's reputation was recovered and was compensated in July 2002 at the request of the Juridical Foundation for the Compensation of the Wrongly Charged People during the Martial Law Period. History has finally clarified charge and paid him due justice.