Jeffery Koo Jr's (
"If the executive of a financial institution refuses to answer a summons, the financial regulator may review whether that person is `fit and proper' for the job," Financial Supervisory Commission spokesperson Susan Chang (
Chang said the commission may discuss Koo's position if he does not return from the US to face prosecutors' questions on Nov. 22.
Seeking to question the executive over his company's troubled takeover of larger rival Mega Financial Holding Co (
According to the Code of Criminal Procedure (
In response, Chinatrust Financial said only that it was cooperating with investigators.
The company did not confirm that Koo would return to Taiwan after finishing his two-month Eisenhower Fellowship program in the US on Nov. 18.
The scandal-plagued financial group experienced a management shakeup after three of its high-ranking executives were detained last month.
In the latest twist to the saga, Lin Shiaw-pin (
Jason Wang (
Prosecutors said last month that their investigation might lead to a variety of charges, including breach of trust, illegal trading and violation of the Banking Law (
The commission has said that Chinatrust Financial invested in Mega Financial via structured notes transacted through its Hong Kong bank branch, but later transferred those notes to another Hong Kong-based company, Red Fire Development Ltd.
Red Fire later cashed in the structured notes, making a profit of more than US$31 million. The money was returned to Chinatrust at its board members' cost after intervention by the financial regulator.
Prosecutors suspect that Red Fire is a front company controlled by the Koo family and are trying to determine whether anyone has profited illegally from the Mega Financial deal.