Wed, May 02, 2018 - Page 3 News List

Court orders three to pay NT$2.86bn in XPEC verdict

By Jason Pan  /  Staff reporter

The Taipei District Court on Monday ordered Yang Jui-jen (楊瑞仁), a convicted stock market manipulator, and two other key figures in a financial fraud case involving XPEC Entertainment (樂陞科技) to pay a total of NT$2.86 billion (US$96.61 million) in compensation to the victims.

Besides Yang, XPEC financial adviser Lin Tsung-han (林宗漢) and Bai Chi Gan Tou Digital Entertainment Co (百尺竿頭數位娛樂) owner Yoshiaki Kashino were ordered to pay compensation.

There are separate litigations against XPEC chairman Aaron Hsu (許金龍), other company executives and independent directors in the class-action lawsuit filed by the Securities and Futures Investors Protection Center on behalf of XPEC shareholders and investors.

The court ruled that Yang, Lin and Kashino colluded with Hsu to manipulate XPEC share prices to make illegal profit in breach of financial regulations, the Securities Exchange Act (證券交易法) and provisions of the Criminal Code.

The court ordered Yang to pay NT$621.43 million, while Lin and Kashino must pay a total of NT$2.247 billion.

Yang, dubbed the “10 Billion Dollar Bandit,” was convicted of stock manipulation in the 1994 Waterland Securities (國票證券) fraud case, and served 13 years in prison before his release in 2008.

The Taipei District Court in February found Hsu and other XPEC executives guilty of financial fraud, insider trading, stock manipulation and related offenses, sentencing Hsu to 18 years in prison.

Investigators found that Hsu colluded with company executives and business associates to manipulate XPEC stock prices by releasing news of a takeover bid by Bai Chi Gan Tou, which resulted in a collective loss of NT$4.86 billion for about 30,000 investors.

In the indictment filed in January last year, prosecutors said Hsu sought illegal arrangements, undermined management, deceived company directors and executives and colluded with outside firms to manipulate XPEC share prices, while diverting about NT$4 billion to his overseas shell company accounts.

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