KMT legislator sentenced to jail for illegal trading

By Shelley Huang  /  STAFF REPORTER

Fri, Jun 12, 2009 - Page 4

Chinese Nationalist Party (KMT) Legislator Fu Kun-chi (傅崑萁) was sentenced by the Taiwan High Court yesterday to four years in jail and a fine of NT$20 million (US$600,000) for illegal trading activities.

The presiding judge said Fu invested in the Taiwan stock exchange from 1997 to 1998 and set up a trading office on Renai Road (仁愛路) in Taipei, borrowing more than NT$3 billion for the purpose of manipulating stock prices.

The court said that Fu caused major disruptions to the stock market by manipulating the prices of several companies and showed no remorse for his crimes.

The ruling may be appealed.

Fu was indicted on Feb. 2, 2000, for illegally speculating in the Taiwan Pineapple Group’s stocks in 1998.

In 2003, Taipei District Court sentenced Fu to six years in jail, fined him NT$150 million and deprived him of his civil rights for four years for the stock speculation. Fu filed an appeal to the Taiwan High Court.

In August 2005 Fu and TV host Chang Shih-chieh (張世傑) were indicted for violating the Securities Transaction Law (證券交易法) and breach of trust for their involvement in illegal trading of several companies’ shares, including Hold-Key Wire & Cable Cooperation.

Fu allegedly ordered Chang —host of a stock market investment program on Taiwan TV — to present false information about Hold-Key shares to the public.

In 2005, the Taiwan High Court sentenced Fu to four years in jail and a fine of NT$60 million. However, that ruling was overturned because Fu had later been cleared of money laundering charges.

Fu said yesterday he had been wronged and would “file as many appeals as it takes” to be served justice.

“Fu Kun-chi is the first one [in Taiwan] who was sentenced to four years in prison even though I lost NT$4 billion in investments and had not been involved in any insider trading or investment disputes,” he told a press conference.

Fu, who is planning to enter the KMT’s primary for Hualien County commissioner, said he would respect the decision of Hualien residents when asked whether he would still run in the primary.