Sun, Aug 07, 2016 - Page 1 News List

Phison Electronics offices raided in embezzlement probe

Staff writer

Phison Electronics Corp chairman Pua Khein-seng speaks at a meeting yesterday.

Photo: Chuo Yi-chun, Taipei Times

Integrated-circuit module maker Phison Electronics Corp (群聯) yesterday confirmed that investigators on Friday searched the company’s offices over alleged violations of the Securities Exchange Act (證券交易法).

Phison said it is cooperating with investigators, but denied any wrongdoing, according to the company’s filing with the Taiwan Stock Exchange.

Local media yesterday reported that prosecutors and investigators searched Phison headquarters in Miaoli County’s Jhunan Township (竹南) and several company executives’ residences on Friday evening.

Authorities have summoned people for questioning over fraud and embezzlement allegations involving Phison chairman Pua Khein-seng (潘健成), reports said.

Prosecutors believe the suspects might have embezzled funds through fraudulent business transactions between Phison and its subsidiaries from 2009 to 2014, leading to inaccuracies in the companies’ financial statements over that period, reports said.

Pan was released on NT$20 million (US$633,513) bail and banned from traveling overseas after being questioned by prosecutors overnight.

Others were also released on bail of between NT$1 million and NT$3 million, reports said.

Phison, established in 2000, focuses on NAND flash technology. NAND flash is a type of memory chip used in storage products such as memory cards.

Apart from NAND flash, the company’s product portfolio includes embedded multimedia cards and solid-state drive controller chips for smartphones and tablets.

Pan yesterday said that some problematic business transactions might have crossed the judicial “red line,” but added that he and others had not made illegal gains, local media reported.

In yesterday’s filing, Phison said the probe would have no impact on the company’s operations.

The company this week reported cumulative revenue of NT$24.152 billion for the first seven months of the year, up 20.15 percent from the same period last year.

The company has not released its earnings results for the second quarter of the year, but in the first quarter, its net profit increased 7.36 percent year-on-year to NT$929.74 million, or NT$4.71 earnings per share, stock exchange data showed.

Phison shares closed at NT$269.5 on Friday on the Taipei Exchange, having risen 15.91 percent so far this year.

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