Two companies `bilk investors'

Two local companies were accused yesterday of separately cheating shareholders out of approximately NT$2 billion by making false claims to secure share sales, the proceeds from which, it was alleged, have mysteriously disappeared.

The allegations were made by DPP Legislator Chen Chin-Chiung (陳景峻) during a press conference at the Legislative Yuan.

These two companies were Info-pro Technique Corp (資碩科技) of Taipei and Taiwan Sunball International Technology (台灣上博國際科技) of Taoyuan County.

Chen said that Info-pro Technique Corp had claimed to be a cable modem manufacturer, but in fact consisted of nothing more than a two-ping office containing three computers. "The Info-pro Technique Corp claimed that the company's net profit would be at least NT$300 million annually. In addition, it told the public that its factory in China was established and ready to roll. But the company never had a factory in China," he added.

The company canceled its company registration at the Ministry of Finance on July 8 last year. But the company has continued to sell the stock, he said.

Taiwan Sunball International Technology manufactures tin solder balls used in the assembly of computer chips. The company has serious financial problems.

Share holders of Info-pro Technique and Taiwan Sunball have contacted Chen in recent months fearing for their investments in the two companies. Chen said that both companies had earned approximately NT$1 billion from the sale of shares. The share holders have never received a dividend from either company.

Taiwan Sunball yesterday declined all requests for interviews. Info-pro is no longer trading.

According to Chen, one Kong Hsiang-ai (孔祥愛), whose current whereabouts are unknown, had been the president of Info-pro Technique Corp but he stopped short of making specific accusations against Kong.

"How can a company keep selling its stock when the company no longer exists? Obviously, someone wanted to cheat innocent share holders on purpose and these share holders will never get their money back, let alone earn any dividends from the companies," Chen said. "I think our law enforcement officials should get involved and begin an investigation into these kinds of fraud."

Of Taiwan Sunball, Chen said, "Unlike the Info-pro Technique Corp, this company still exists and it held a shareholders' meeting earlier this year. It has all the appearance of a normal company but it isn't a normal company," he said.

"This company now has serious financial problems after the shareholders' investments were removed from it by a person or persons unknown. It is the share holders who are bearing the entire loss."

Chen also accused Taiwan Sunball of falsely telling the press that the company was going to become a publicly listed company, though it never did so.