Former Straits Exchange Foundation secretary-general and vice chairman Chiao Jen-ho (焦仁和) yesterday dismissed allegations by the founder of a Los Angeles company who is suing him for alleged fraud and violation of company law.
Jack Qin (秦杰), founder and chairman of EFT BioTech Holdings Inc, also accused Ministry of Economic Affairs officials of collusion with Chiao and a Taipei-based shipper founded by Chiao, demanding US$60 million in compensation.
Chiao said he was not privy to the reason behind the lawsuit and would consider it slander if Qin did not provide solid proof to back the charges.
“I have been collecting the necessary evidence [to prove my innocence] … but [I] don’t know what they are suing me about,” Chiao said. “[I] hope the court can deal with the issue as soon as possible so as not to damage my reputation.”
Chiao’s remarks came after Qin told a press briefing in Los Angeles on Friday that he had filed a lawsuit against Chiao late last year at the Shilin District Court in Taipei.
Qin accused Chiao of not following through with a US$15 million investment in Excalibur International Marine Corp (華達國際海運) that Chiao had committed to in 2008.
Qin said Chiao used false documents to apply for company recapitalization and to change its shareholding structure, adding that the registration for the company’s recapitalization was later approved by the ministry.
In Taipei, Vice Minister of Economic Affairs Lin Sheng-chung (林聖忠) told Central News Agency (CNA) yesterday that the ministry was closely monitoring the matter after it received documents from Taiwanese officials stationed in Los Angeles.
Lin said the case occurred between 2006 and 2007 and that the ministry would have to ascertain whether there was any wrongdoing in the registration process. He said, however, that it would be “far-fetched” to allege collusion between the government and the company, CNA reported.
Chiao established Excalibur International Marine in June 2006, because he anticipated growing transportation services between Taiwan and China following warmer cross-strait relations.
The company’s 2,292-tonne flag ship Ocean LaLa was the first license holder for cross-strait ferry transport and launched the direct cross-strait cruise service from Taichung to Meizhou Island off the coast of China’s Fujian Province on May 15, the first such cross-strait service in 60 years.
EFT BioTech Holdings has a 52 percent interest in the operator of the Ocean LaLa. In May 2008, the two sides agreed to order two cruise ships from Marinteknik Shipbuilders PTE Ltd in Singapore, with Chiao agreeing to use US$15 million of his money as a downpayment for the orders.
Qin said that at the end of 2008, however, he discovered that Chiao had neither wired the money to Singapore nor ordered the two cruise ships from Marinteknik, an allegation Chiao denied.
On Jan. 12, Excalibur International Marine held a special shareholder meeting to remove Chiao from the company’s board and from his position as chairman. Chiao was replaced by EFT vice chairman Pyng Soon (孫健平).
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