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If found guilty, Chen could face at least five years in prison.
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He was returned to the court after doctors found he had sustained only a minor muscle tear.
It was Chen's fifth hearing in the past six months.
He faces allegations of money laundering and misusing a special fund during his eight-year administration which ended in May.
Taipei District Court spokesman said, "The defendant is suspected of being involved in embezzling public funds under the anti-corruption law, using his official position to use the money in fraud, taking bribes in his official position, violating the anti-money laundering law."
The spokesman said these crimes carry a minimum five-years prison term and that Chen is suspected of giving false evidence.
The Taipei District Court says Chen won't be allowed visitors during his detention, which can last four months before he's formally charged.
It says the restriction it to prevent him from colluding with other suspects to make identical confessions.
So far prosecutors have interrogated 15 suspects involved in Chen's case, including his wife, son, daughter-in-law, assistants and friends. Eight of them are in custody.
(CCTV November 14, 2008)
