The nation's leading solar cell maker saw share prices tumble by the daily limit on the local bourse yesterday, with the company reportedly under investigation by prosecutors over alleged pump-and-dump stock scams.
Motech Industries Inc (
Prosecutors are concerned that some of the company's shares were allocated to accounts that actually flowed back into the pockets of certain major shareholders.
In a statement made to the Taiwan Stock Exchange yesterday, Motech said the company was unaware of practices by investors outside the company, and none of its company officials were under investigation. Operations would remain normal, the statement said.
The report also dragged down related stocks yesterday. Shares of rival E-ton Solar Tech Co (
Formosa cable TV reported yesterday that E-ton was also investigated by prosecutors over its recent surge in share prices. The company denied the report, saying that investigators have neither searched the company nor questioned any company staff.