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Four questioned about insider trading

Prosecutors conducted numerous raids and questioned several individuals yesterday about alleged illegal share trading ahead of Standard Chartered Plc's announcement last year that it was buying Hsinchu International Bank (新竹國際商銀).

"We searched 11 sites and brought five people back to the office for questioning about alleged insider trading," Taipei District Prosecutors' Office spokesman Lin Jinn-tsun (林錦村) said

Four people were released after questioning, Lin said in a telephone interview. The fifth had not been questioned by prosecutors as of the press time.

Those questioned included members of Chan family, which has a majority shareholding and the chairmanship of Hsinchu International, as well as Chen Wu-kang (陳武剛), chairman of direct selling firm Kelti International Co (克緹國際), according to another prosecutor who declined to be named.

The probe began after Standard Chartered said on Sept. 29 last year that it would acquire the Hsinchu lender.

Prosecutors found a suspicious pattern of trading in Hsinchu International shares on the five trading days before the announcement.

Lin dismissed cable TV reports that prosecutors had raided any Standard Chartered Bank (Taiwan) Ltd offices.

The UK bank said last night that it had no prior knowledge of the probe. It declined further comment, saying that it was inappropriate to discuss an ongoing investigation.
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