Prosecutors yesterday summoned Chinatrust Charity Foundation chairman Jeffrey Koo Jr (辜仲諒), CTBC Financial Holding (中信金控) chairman Yen Wen-long (顏文隆) and Gobo Group (國寶集團) president Chu Guo-rong (朱國榮) for questioning in connection with judicial investigations into possible financial irregularities in four cases of alleged insider trading, profiteering on real-estate transactions and illegal transfers of company funds.
The Special Investigation Division (SID) of the Supreme Prosecutors’ Office, a unit in charge of major corruption and economic crimes, is probing leading financial companies and business tycoons, with billions of New Taiwan dollars reported to have changed hands in a number of allegedly illegal deals.
SID officials said at a media briefing that they raided 58 offices and residences across the nation yesterday to gather evidence, while summoning 94 people for questioning.
Photo: Wang Yi-sung, Taipei Times
The operation mobilized 18 prosecutors, 218 criminal investigators, 150 prosecutor-investigator officials and 62 judicial police officers, they said.
“The SID is working with the Taipei District Prosecutors’ Office on judicial probes into CTBC Financial Holding and Gobo Group on possible breaches of the Securities and Exchange Act (證券交易法) and the Banking Act (銀行法),” SID spokesman Kuo Wen-tung (郭文東) said.
Aside from his role with the foundation, Koo is a major shareholder in CTBC Financial Holding and is known as the man responsible for the company’s day-to-day management.
Photo: CNA
The SID said that from 2003 to 2007, CTBC Financial Holding illegally transferred company assets worth about US$300 million into accounts controlled by Koo on the pretext of investing in subsidiaries.
Prosecutors said board members or employees of CTBC Financial Holding might have formed a shell company to partner with publicly listed Chong Hong Construction Co (長虹建設) to purchase a plot of land in Taipei’s Neihu District (內湖) to construct an office building.
Prosecutors said collaborators in the deal sold the land to the financial holding company’s banking unit, CTBC Bank Co Ltd (中國信託銀行) for more than NT$5 billion (US$155.2 million) and pocketed the difference.
CTBC Financial Holding bought MetLife Taiwan Life Insurance Co (大都會人壽) and renamed it CTBC Life Insurance Co (中信人壽) and later bought Taiwan Life Insurance Co (台灣人壽) and merged it with CTBC Life Insurance, keeping the Taiwan name.
The SID accused the holding company of insider trading and financial irregularities during the purchases last year, saying that the company used funds from CTBC Life Insurance to purchase collateral from Gobo Group, with Gobo making NT$200 million to NT$300 million from the deal.
Chong Hong chairman Lee Wen-tsao (李文造) was also summoned for questioning yesterday.
CTBC Financial Holding and Chong Hong Construction issued statements saying that the land transaction was executed according to the law, adding that they hope that the truth would come out as soon as possible.
Prosecutors and judicial officials were seen carrying dozens of cartons of documents after raids at CTBC Financial Holding’s headquarters, its company offices and other locations.
Prosecutors also summoned tycoon Kuo Chuan-ching (郭銓慶), former chairman of construction firm Rich Development Co (力麒建設), who emerged after questioning yesterday evening.
The questioning was still ongoing as of press time last night.
Additional reporting by CNA
INVESTIGATION: The case is the latest instance of a DPP figure being implicated in an espionage network accused of allegedly leaking information to Chinese intelligence Democratic Progressive Party (DPP) member Ho Jen-chieh (何仁傑) was detained and held incommunicado yesterday on suspicion of spying for China during his tenure as assistant to then-minister of foreign affairs Joseph Wu (吳釗燮). The Taipei District Prosecutors’ Office said Ho was implicated during its investigation into alleged spying activities by former Presidential Office consultant Wu Shang-yu (吳尚雨). Prosecutors said there is reason to believe Ho breached the National Security Act (國家安全法) by leaking classified Ministry of Foreign Affairs information to Chinese intelligence. Following interrogation, prosecutors petitioned the Taipei District Court to detain Ho, citing concerns over potential collusion or tampering of evidence. The
‘FORM OF PROTEST’: The German Institute Taipei said it was ‘shocked’ to see Nazi symbolism used in connection with political aims as it condemned the incident Sung Chien-liang (宋建樑), who led efforts to recall Democratic Progressive Party (DPP) Legislator Lee Kun-cheng (李坤城), was released on bail of NT$80,000 yesterday amid an outcry over a Nazi armband he wore to questioning the night before. Sung arrived at the New Taipei City District Prosecutors’ Office for questioning in a recall petition forgery case on Tuesday night wearing a red armband bearing a swastika, carrying a copy of Adolf Hitler’s Mein Kampf and giving a Nazi salute. Sung left the building at 1:15am without the armband and apparently covering the book with a coat. This is a serious international scandal and Chinese
Seventy percent of middle and elementary schools now conduct English classes entirely in English, the Ministry of Education said, as it encourages schools nationwide to adopt this practice Minister of Education (MOE) Cheng Ying-yao (鄭英耀) is scheduled to present a report on the government’s bilingual education policy to the Legislative Yuan’s Education and Culture Committee today. The report would outline strategies aimed at expanding access to education, reducing regional disparities and improving talent cultivation. Implementation of bilingual education policies has varied across local governments, occasionally drawing public criticism. For example, some schools have required teachers of non-English subjects to pass English proficiency
TRADE: The premier pledged safeguards on ‘Made in Taiwan’ labeling, anti-dumping measures and stricter export controls to strengthen its position in trade talks Products labeled “made in Taiwan” must be genuinely made in Taiwan, Premier Cho Jung-tai (卓榮泰) said yesterday, vowing to enforce strict safeguards against “origin laundering” and initiate anti-dumping investigations to prevent China dumping its products in Taiwan. Cho made the remarks in a discussion session with representatives from industries in Kaohsiung. In response to the US government’s recent announcement of “reciprocal” tariffs on its trading partners, President William Lai (賴清德) and Cho last week began a series of consultations with industry leaders nationwide to gather feedback and address concerns. Taiwanese and US officials held a videoconference on Friday evening to discuss the
RSS