Sat, Sep 15, 2018 - Page 12 News List

Court overturns suspension of ex-Concord chairman

By Ted Chen  /  Staff reporter

The Taipei High Administrative Court on Thursday overturned the Financial Supervisory Commission’s six-month suspension of former Concord Securities Co (康和證券) chairman Gordon Yeh (葉公亮) that it ordered in May last year.

The commission said it might appeal the ruling after it receives the court’s verdict in writing.

Concord Securities in 2016 was implicated in the fallout of a botched tender offer by Japan-based Bai Chi Gan Tou Digital Entertainment Co (百尺竿頭) to acquire a 25.17 percent stake in XPEC Entertainment Inc (樂陞科技), which left investors with massive losses.

Concord Securities had underwritten a series of convertible bonds for XPEC that were listed before the game developer disclosed its tender offer by the Japanese suitor.

Under Yeh’s watch, Concord Securities and Far Eastern International Bank (遠東銀行) arranged to sell the XPEC convertible bond swap assets to a number of company insiders and a select list of investors, contravening the Securities and Exchange Act (證交法), as well as corporate governance and internal control rules.

Yeh has since resigned from Concord Securities, and while the commission’s suspension has long lapsed, his appeals are aimed at clearing his reputation in the financial industry, observers have said.

The court in June overruled the commission’s order to oust Mckinney Tsai (蔡友才) from Mega International Commercial Bank’s (兆豐銀行) board of directors.

State-run Mega International in 2016 was handed a US$180 million fine by the New York State Department of Financial Services over its failure to meet money laundering rules.

The commission yesterday confirmed that it had filed to appeal the ruling in July.

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