Wed, Jun 27, 2007 - Page 1 News List

Chao Chien-ming's sentence increased

APPEAL REJECTED The High Court ruled that the president's son-in-law and his father made more money illegally than earlier believed and so should spend more time in jail

By Rich Chang  /  STAFF REPORTER

Taiwan High Court spokesman Wen Yao-yuan announces yesterday that the sentences of Chao Chien-ming and his father Chao Yu-chu for insider trading had been increased by 12 months and 14 months respectively.

PHOTO: LIAO CHEN-HUEI, TAIPEI TIMES

The Taiwan High Court yesterday rejected the appeal of Chao Chien-ming (趙建銘), the son-in-law of President Chen Shui-bian (陳水扁), and his father, Chao Yu-chu (趙玉柱), against their insider trading convictions, increased their sentences and fined them each NT$30 million (US$927,000).

Chao Chien-ming's sentence was lengthened by 12 months to seven years imprisonment. Chao Yu-chu received a 14-month addition to his sentence, meaning he must now serve nine years and six months.

The Chaos were appealing their convictions last December by the Taipei District Court in connection with the Taiwan Development Corp (TDC) scandal and other deals.

Chao Chien-ming's defense attorney Chen Feng-fu (陳峰富) told reporters that his client would appeal to the Supreme Court.

Both the Chaos and prosecutors had appealed the District Court's decision to the Taiwan High Court. The prosecutors appealed because they believed the defendants had made more illegal profits than the district court had ruled on and should therefore receive heavier sentences.

Taiwan High Court spokesman Wen Yao-yuan (溫耀源) told a press conference that the Chaos "received heavier sentences because the High Court decided the defendants had made more money than the district court ruled on."

The High Court also decided that all the money the Chous made through insider trading should be accounted for. Wen said the court decided that the pair should be responsible for the money they made illegally as well as the money their accomplices made.

While the district court had decided that Chao and his father had made a total of NT$4.27 million illegally, the High Court decided that the Chaos and two codefendants, former Taiwan Development Corp chairman Su Teh-jien (蘇德建) and businessman Yu Shih-yi (游世一), had made more than NT$100 million through insider trading of TDC shares, Wen said.

He said the Securities Transaction Law (證券交易法) states that a person should receive a longer sentence if he or she made more than NT$100 million in an illegal deal.

The elder Chao's sentence also included his violation for embezzlement of public funds.

He embezzled NT$11 million from Eslite Books chairman Robert Wu (吳清友), who had deposited the sum into one of Chao Yu-chu's bank accounts as a donation to the Taiwan Table Tennis Association, which the senior Chao headed.

Su was sentenced to seven years and six months in jail while Yu was sentenced to seven years and two months in jail. Yu was also fined NT$60 million.

The TDC scandal revolved around two 2005 dinners at a Japanese restaurant in Taipei.

Su, Chang Hwa Commercial Bank chairman Chang Po-shin (張伯欣), bank president Chen Chen-chao (陳辰昭), Yu and Chao Chien-ming were all at the dinners.

It is believed that confidential information about TDC was discussed on both occasions.

First daughter Chen Hsing-yu (陳幸妤) said she was surprised by yesterday's ruling.

She told reporters camped outside her office that she respected the judiciary and would file an appeal for her husband.

sorry

Democratic Progressive Party Legislator Huang Wei-cher (黃偉哲) said he was sorry that the judges had not cut Chao Chien-ming's sentence considering the public service he has performed since the first trial.

Huang was referring to Chao Chien-ming's volunteer work as an orthopedist at Tainan's Sin Lau Hospital since March 1.

Chao Chien-ming began working there after his application to resume his job at National Taiwan University Hospital's orthopedics department was rejected.

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