District prosecutors yesterday searched Intrust Securities Investment Consulting Co (新天證券投顧) on suspicion that the company sold offshore funds illegally.
The Taipei District Prosecutors’ Office received information that the securities investment company had been selling unauthorized offshore funds from the Virgin Islands. After gathering evidence, prosecutors yesterday raided several locations, including the company’s office on Xinyi Road and the residences of company management.
Prosecutors and staff from the Investigation Bureau collected evidence including financial reports and took company employees, including a top manager surnamed Wang (王), for questioning.
Prosecutors suspect company officials of violating Article 107 of the Securities Investment Trust and Consulting Act (證券投資信託及顧問法) by selling offshore funds without approval from authorities.
The crime is punishable by imprisonment of up to five years and a fine of between NT$1 million (US$30,500) and NT$50 million.
Prosecutors suspect the company has raised tens of millions of NT dollars for an illegitimate offshore fund.
Because the offshore fund may not have been approved by the Financial Supervisory Commission, the legal rights and benefits of customers who purchased shares of the fund may be at risk, prosecutors said.
Prosecutors have yet to determine whether the company was also involved in fraud.