With reference to abundant first-hand archives, this article explores the activities of Chen Yi-song and Liu Ming in the early post-WWII era, their roles in the 228 Uprising, and what befell them afterwards. Analyzing their rise and fall in the political arena would shed light on the characteristics of the Kuomintang (KMT) rule in post-war Taiwan. The analysis revealed that the Bureau of Investigation and Statistics (BIS) was the first institution of KMT government entered into Taiwan. The BIS maintained surveillance of Taiwan society using underworld gangsters. With the outbreak of the 228 Incident, the KMT government penetrated the 228 Settlement Committee in various ways to control the development of the situation. Both Chen Yi-song and Liu Ming were key members of the Committee; and according to newly discovered archives, they cooperated with the KMT secret service. These findings shed new light on the governing tactics under Chen Yi and led to re-evaluation of the 228 Settlement Committee. Despite being collaborators of the KMT rule, Chen and Liu eventually suffered persecution. Their tribulations brought to light several characteristics of Chinese political culture, including ruthless power struggle among different factions within the government, severe infighting and keen competition among cliques within the same faction, and those in power having no clear standards for reward or punishment. Most frightening of all, the spirit of rule of law was non-existent；hence, secret agents would frame innocent people for personal gain or use illegal means against opponents. Being unfamiliar with the Chinese political culture, Chen and Liu faced harsh setback in their political careers. In retaliation, Chen fled Taiwan to Communist China; while Liu, upon release from imprisonment, became very active in the opposition movement in protest against the KMT government.