Sat, Sep 02, 2017 - Page 12 News List

Court orders assets seized in XPEC affair

INTERRUPTED:More than 10 people stand accused in the case involving accusations of fraud, and dubious and insider stock trading that features many prominent names

By Lauly Li  /  Staff reporter

The Securities and Futures Investors Protection Center (SFIPC) yesterday confirmed that the Taipei District Court had imposed a provisional seizure of former Taipei deputy mayor Lee Yong-ping’s (李永萍) assets in a move to protect the interests of investors in XPEC Entertainment Inc (樂陞科技).

Lee is one of three former independent board directors at XPEC.

“I cannot elaborate on the details. All I can say is that it is a necessary move for the SFIPC to impose the asset seizure to keep defendants from eluding compensation payments,” SFIPC chairman Chiu Chin-ting (邱欽庭) said by telephone.

NOT AFFECTED

Chiu’s remarks came after XPEC on Thursday night posted a filing with the Taiwan Stock Exchange, saying that the company would hire lawyers to defend the company, board directors and accountants against the SFIPC’s lawsuits.

The company said in the filing that the SFIPC’s legal action would not affect the company’s finance or operation.

The SFIPC on Thursday last week filed civil lawsuits against more than 10 defendants who allegedly violated the Company Act (公司法) and the Securities and Exchange Act (證券交易法) in the XPEC affair, which includes allegations of financial fraud, dubious stock trading and insider trading, Chiu said

BIG NAMES

Chiu said the defendants include XPEC chairman Arron Hsu (許金龍), several board directors and two other former independent board directors: former minister of economic affairs Yiin Chii-ming (尹啟銘) and media personality Sisy Chen (陳文茜).

The defendants also include XPEC acting chairman Ho Chia-hsing (何嘉興), Gamania Digital Entertainment Co (遊戲橘子) chief executive officer Albert Liu (劉柏園), who is a former XPEC board director and the legal representatives of Ernest & Young Taiwan and Concord Securities Co (康和證券), the Chinese-language Apple Daily reported yesterday, citing a court document.

MORE SEIZURES

Chiu said the SFIPC is seeking a total of NT$3.95 billion (US$131 million) in compensation from more than 10 defendants on behalf of 19,620 investors affected by the affair.

Citing sources from the court, the Liberty Times (the Taipei Times’ sister newspaper) reported that the SFIPC had requested the court to seize the assets of the three former XPEC independent directors, but the court only granted permission for action to be taken against Lee, as she showed signs she might transfer her assets.

The court seized Lee’s assets that values more than NT$10 million, the Liberty Times reported.

Lee yesterday afternoon was quoted by the Central News Agency as saying that she is to file a counter-appeal against the court seizure order for her assets.

SUSPENSION

Trading in XPEC shares has been suspended since Nov. 17 last year at the Taipei Exchange, as the company did not resubmit its quarterly financial statements of 2014, 2015, and the first, second and third quarter of last year in accordance with the exchange’s demands.

FAILED SALE

The game developer landed in trouble following a controversial stake sale to Bai Chi Gan Tou Digital Entertainment Co (百尺竿頭) that failed in August last year.

Bai Chi Gan Tou in May last year announced it would acquire a 25.17 percent stake in XPEC for NT$4.86 billion, but dropped the deal on Aug 30 last year, a day before it was supposed to pay investors who agreed to sell their shares, affecting nearly 20,000 investors.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top