Sat, Apr 04, 2009 - Page 3 News List

Yuanta bosses indicted over sale of shares

By Rich Chang  /  STAFF REPORTER

Yuanta Group chairman Rudy Ma (馬志玲) and his wife, Yuanta Securities Corp (元大證券) chairwoman Judy Tu (杜麗莊), were indicted yesterday on suspicion of involvement in an irregular trading case.

“Ma and Tu were indicted on suspicion of violating breach of trust and the Securities Transaction Act (證券交易法) among other offenses, and prosecutors asked the Taipei District Court to sentence the pair to 10 years in prison,” Taipei District Prosecutors’ Office spokesman Lin Jinn-tsun (林錦村) told a press conference yesterday.

Along with the couple, Yuanta Securities president Lee Chang (張立秋), bond department assistant manager Wu Li-min (吳麗敏), Yuanta Bank general manager Chen Chi-chang (陳麒漳) and former Yuanta official Lin Ming-yi (林明義) were indicted for their alleged involvement. Prosecutors asked that they each receive eight-year sentences.

Prosecutors said the irregularities involved the sale of shares of Yuanta Investment Trust Co to Yuanta Securities in 2005, after the former suffered substantial losses from its investment in interest rate-linked structured notes following a series of interest rate hikes by the US Federal Reserve.

Prosecutors said that Yuanta Securities made illegal profits of NT$600 million (US$18 million) from the trading.

Yuanta Securities is the nation’s largest brokerage firm. Prosecutors last July raided 11 of the company’s offices, including Yuanta Securities’ headquarters in Taipei. Ma and Tu were later released on NT$20 million and NT$10 million bail respectively.

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