Tue, Aug 14, 2007 - Page 1 News List

Gary Wang and 31 associates indicted

DIRTY MONEY The chairman of the Eastern Multimedia Group is one of a number of individuals suspected of embezzling a total of NT$41.2 billion from the group

By Rich Chang  /  STAFF REPORTER

Taipei District Prosecutors' Office spokesman Lin Jinn-tsun addresses journalists at a press conference in Taipei yesterday on the indictment of Eastern Multimedia Group chairman Gary Wang.

PHOTO: LO PEI-DER, TAIPEI TIMES

Gary Wang (王令麟), chairman of the Eastern Multimedia Group (EMG), and 31 other individuals were indicted yesterday by Taipei prosecutors for their alleged involvement in several embezzlement scandals.

Prosecutors requested that the Taipei District Court sentence Gary Wang to 28 years in jail and impose a fine of NT$1 billion (US$30 million).

Gary Wang is the son of Rebar Asia Pacific Group (力霸亞太企業集團) founder Wang You-theng (王又曾), who was released from an immigration detention center in the US last Tuesday.

US immigration authorities are in the process of appealing the court ruling that led to his release on bail.

"Gary Wang, his father Wang You-theng, members of the Wang family and Gary Wang's associates are suspected of embezzling a total of NT$41.2 billion from the group," Lin Jinn-tsun (林錦村), spokesman for the Taipei District Prosecutors' Office told a press conference yesterday.

corruption

"Gary Wang and the other defendants are charged with violations of the Securities and Exchange Law (證券交易法), Banking Law (銀行法), Company Act (公司法), Insurance Law (保險法), the Government Procurement Law (政府採購法), corruption, breach of trust, forgery and other offenses," Lin said.

Gary Wang's wife Tsai Hsueh-ching (蔡雪卿) was also indicted with prosecutors asking for a 10-year sentence.

EMG chief financial officer Tung Chia-ching (童家慶) was indicted on charges which could lead to a 16-year jail term.

Former Taipei City Sports Department director Liu Jia-tseng (劉家增) was indicted on suspicion of helping EMG win the contract to operate the Taipei Arena. Prosecutors requested five years in prison.

Prosecutor Lin said the Wangs used a number of mechanisms to embezzle funds from the companies from 1998 to last year.

"Wang senior and junior seriously jeopardized the country's economic and financial order, and they deserve heavy punishment," Lin said.

He claimed that Gary Wang made illegal profits from the sale of a majority stake in Eastern Multimedia to the US-based Carlyle Group.

profited

Lin said Gary Wang bought the cable operator's shares before the sale to Carlyle was announced and later profited from selling them at a higher price to the equity firm.

The sale in April last year was valued at US$1.3 billion.

Lin did not give a figure on how much Wang allegedly profited from the deal.

Gary Wang also embezzled NT$17.48 billion from Asia Pacific Broadband Telecom Co (亞太固網), a local fixed-line operator and a subsidiary of Eastern Multimedia Group, he said.

Prosecutors suspect that Gary Wang and his father embezzled NT$3.59 billion from the sale of one of the group's properties to Union Insurance Co (友聯產險), Lin said.

Lin said prosecutors also suspected that the younger Wang bribed former Taipei City official Liu to win the contract to operate the Taipei Arena for a eriod of nine years.

Additional reporting by AP

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