FSC's Lee denies connection to trading scandal

On the eve of its first anniversary, the Financial Supervisory Commission should have been celebrating its achievements yesterday but was instead enveloped in an embarrassing and tense atmosphere, as one of its senior officials was grilled over illegal-trading suspicions.

This is the first time that Lee Chin-chen (李進誠), the director-general of the commission's Examination Bureau, made a public appearance before the press since he was summoned for questioning by prosecutors on Monday.

Lee, a prosecutor for the Taiwan High Court and an expert on financial crime, has been linked to the snowballing insider-trading scandal regarding Power Quotient International Co (勁永國際).

He assumed the position in January.

His connection to the scandal surfaced when prosecutors investigating the case found a note at Lin Ming-da's (林明達) office allegedly written by Lee, in which he asked Lin to borrow money against Power Quotient's shares on his behalf.

Lin, an individual investor allegedly in charge of the illegal trading, was released on bail last Thursday after his office and residence were raided on the same day.

Defending his reputation, Lee yesterday said: "I did not write that note. I hope the note can be sent for handwriting authentication as soon as possible."

Lee said he met Lin through a lawmaker's introduction at a restaurant early last year. "We are just friends," Lee said, adding that the last time he talked on the phone with Lin was early this year.

"I have never owned Power Quotient shares, nor have I had any inappropriate transactions," he said.

Kong Jaw-sheng (龔照勝), the commission chairman, threw full support behind Lee, saying he has extensive experience and expertise in combating financial illegalities and the commission needs this kind of talent to maintain justice.

"I've talked with Minister of Justice Morley Shih (施茂林) on the phone several times. We both agree that prosecutors should conduct investigations based on evidence, and refrain from leaking information to the media to avoid affecting the investigations," Kong said.

Ho Kuan-jen (候寬仁), a prosecutor at the Black Gold Investigation Center of the Taiwan High Court Prosecutors' Office which is in charge of the case, asked Lee to temporarily suspend his work for the convenience of investigators, but Kong rejected of the idea.

Lee has not been indicted for any crime surrounding the Power Quotient scandal, which allegedly involves agents of the Criminal Investigation Bureau, two reporters and individual stock market investors.

Aside from supporting Lee, Kong also laid out plans for the commission's second year at a press conference yesterday.