Veutron's chairman faces questions on illegal stock trading

Veutron Corp (力廣科技) chairman Frank Huang (黃崇仁) was summoned yesterday for questioning by prosecutors on suspicion of insider trading.

Veutron is a memory module and scanner maker under the Powerchip Group (力晶集團), which includes the nation's second-largest maker of computer memory chips, Powerchip Semiconductor Corp (力晶半導體).

Taichung prosecutors and agents from the Ministry of Justice's Investigation Bureau questioned Huang and 13 company executives on suspicion of selling off their holdings in the company between 2001 and 2002 ahead of the disclosure of the company's massive losses totaling NT$3 billion (US$90.63 million). The questioning was still ongoing as of press time.

Huang, who also doubles as chairman of Powerchip Semiconductor, hasn't appeared in public since Veutron's offices in Taichung, Taipei and Hsinchu, as well as his residence in Taipei, were searched by prosecutors and investigators on March 15.

Prosecutors also summoned Eric Tan (譚仲民), the company's vice general manager and spokesman, and Huang's nephew William Huang (黃俊欽) for questioning that day. Frank Huang, although summoned, did not show up.

Tan confirmed in a telephone interview yesterday that Frank Huang and his wife were questioned by prosecutors for their alleged involvement in insider trading between 2001 and 2002.

Tan dismissed speculation that Frank Huang was planning to resign before the investigation is concluded, but confirmed that Huang had quit as a member of the board of another subsidiary, Zentel Electronic Corp (力積電子), which Huang founded in 2002.

Zentel designs niche memory chips primarily used in consumer electronics, the company's Web site said.

"[Frank Huang's] move is aimed at making way for independent directors to join the board and boost corporate governance," Tan said.