Veutron Corp investigated for alleged insider trader

Prosecutors yesterday raided Veutron Corp (力廣科技), a local maker of scanners and electronic components, investigating an insider trading scandal that may involve its chairman Frank Huang (黃崇仁).

Huang also doubles as chairman of Powerchip Semiconductor Corp (力晶半導體), the nation's second-largest maker of computer memory chips.

The raids on Veutron's offices in Taichung, Taipei and Hsinchu as well as Huang's residence in Taipei yesterday afternoon were led by prosecutors from the Taichung branch of the Taiwan High Court.

Prosecutors summoned the company's vice general manager Eric Tan (譚仲民) and Huang's nephew William Huang (黃俊欽) for questioning. Frank Huang, although summoned, did not report to prosecutors.

Prosecutors' investigations show that Frank Huang allegedly began insider trading in 2002, while many of his family members were also involved.

As of press time yesterday, the prosecutors' office had made no comments on the raids, as the questioning of Huang Chun-chin and Tan was still ongoing.

Veutron said last night in a statement that the Powerchip group, which includes Powerchip Semiconductor, was not involved in the probes into alleged insider-trading.

"The search has nothing to do with companies under the Powerchip group," the statement said.

Veutron, saying it would fully cooperate with the authorities, stressed that companies within the group and its board members were not involved in any stock trading during the company's financial realignment last year.

Last year Veutron reduced 46.61 percent in capital to NT$687.05 million (US$20.8 million), aiming to dilute losses. Later that year, the company planned a capital increase of NT$363.6 million via private placement. It posted NT$72.22 million in losses for last year.

Shares of Veutron had increased more than six times to NT$37.7 as of yesterday, from NT$5.07 after the company completed capital reduction last September.