Sun, Jun 18, 2017 - Page 1 News List

New detentions requested over SinoPac loans probe

PLOT THICKENS:SinoPac Financial CEO Yu Kuo-chih was released after posting NT$5m bail. YFY's former chairman Chiu Hsiu-ying was released on NT$2.5m bail

By Chang Wen-chuan and Jake Chung  /  Staff reporter, with staff writer

SinoPac Financial chairman Ho Shou-chuan is escorted to the Taipei District Court early yesterday morning.

Photo: Chien Jung-fong, Taipei Times

The Taipei District Prosecutors’ Office yesterday applied for the detention of SinoPac Financial Holdings Co (永豐金控) chairman Ho Shou-chuan (何壽川) and two others for suspected violations of the Securities Exchange Act (證券交易法).

The request to detain Ho, YFY Inc (永豐餘控股) land development department manager Chang Chin-pang (張金榜) and the wife of Sun Power Development and Construction Co’s (三寶建設) president, Liao Yi-min (廖怡愍), came after overnight questioning by prosecutors.

SinoPac Financial is a YFY affiliate.

Meanwhile, SinoPac Financial chief executive officer Yu Kuo-chih (游國治) was released on NT$5 million (US$164,577) bail, while YFY's former chairman Chiu Hsiu-ying (邱秀瑩) was released on bail of NT$2.5 million and prohibited from leaving the nation, the office said.

YFY accounting department manager Wu Chung-fu (吳忠福) was released on bail of NT$500,000, while Ho’s wife, Chang Hsing-ju (張杏如), and others were released without bail, it added.

The probe came after the Financial Supervisory Commission in April fined SinoPac Financial NT$10 million after it discovered that the company’s leasing unit had extended NT$5 billion in questionable loans to Sun Power — whose chairman is related to Chang Hsing-ju — and handed its findings over to prosecutors.

The loans extended to Sun Power were transferred between shell companies controlled by SinoPac and Sun Power without sufficient collateral, which violated the limitations on transactions between interested parties, as it was discovered that the borrower had familial ties to Ho, the commission said.

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