Lite-On Technology Corp (光寶科技) founder Raymond Soong (宋恭源) was yesterday released on NT$30 million (US$1.06 million) bail after being questioned over alleged insider trading, the Taipei District Prosecutors’ Office said.
Close friends of Soong who allegedly received insider information from him were also released after being questioned by prosecutors.
Soong’s friend Shan Ya-wen (單雅文) was freed on NT$30 million bail and his sister released on NT$3.5 million bail.
Another friend, Yu Ming-chang (游明昌), and his wife and son were each released on NT$1 million bail.
Yu is a brother-in-law of Representative to Japan Frank Hsieh (謝長廷).
Prosecutors did not disclose any other details of the ongoing investigation.
Soong and his friends are suspected of buying a large number of Lite-On Semiconductor Corp (LSC, 敦南科技) shares in the middle of 2019 before it was publicly known that the company, a Lite-On Technology subsidiary that Soong chaired, would be sold to US firm Diodes Inc.
Diodes first made public its plan to buy LSC on Aug. 9, 2019, when it offered to pay NT$42.50 for each LSC share.
On the following three trading days in Taipei the stock rose 26.5 percent from NT$32.10 to NT$40.60, a surge that was not surprising considering the offer price, Taiwan Stock Exchange data showed.
The shares traded between NT$39 and NT$42 until the sale was completed at the end of November last year.
Soong and Shan bought 10.165 million LSC shares in July 2019, before the proposed acquisition was announced, when they were trading between NT$31.30 and NT$35.10, prosecutors said.
They sold the shares in October and November last year just before the deal closed, when they were trading at about NT$42 a share, they said.
As a result, Soong and Shan made a profit of about NT$60 million, prosecutors said.
Yu, his wife and son, Shan’s sister and other friends with whom Soong allegedly shared the information also profited, they said.
Soong and his friends face being charged with breaches of insider trading clauses in the Securities and Exchange Act (證券交易法).
Prosecutors on Monday night raided Lite-On Technology’s headquarters in Taipei’s Neihu District (內湖) and several other locations.
Soong still has an office at the company’s headquarters, despite retiring as chairman in July last year.
Tom Soong (宋明峰), his son, is currently the chairman.
The company, a major manufacturer of LEDs and computer peripherals, said in a statement on Monday that the allegations involve Raymond Soong personally and the investigation would not affect the company’s operations.
Lite-On Technology shares yesterday fell 2.22 percent to close at NT$57.20, underperforming the TAIEX, which closed up 0.21 percent at 15,853.09.
The company posted earnings per share of NT$4.31 for last year, compared with NT$4.03 in 2019.
ARRANGEMENTS MADE: Sources told the ‘Liberty Times’ that Nancy Pelosi could visit the legislature tomorrow and she might also meet with President Tsai Ing-wen If US House of Representatives Speaker Nancy Pelosi comes to Taiwan, she would likely arrive this evening or tomorrow morning after visiting Malaysia, a US analyst said yesterday. According to the China Press, a Malaysian Chinese-language newspaper, she is to arrive in Kuala Lumpur today for her second stop. Although the Malaysian government has not announced an official itinerary, the paper cited a person familiar with the plans as saying she would only stay for a few hours. Meanwhile, South Korean National Assembly Speaker Kim Jin-pyo’s office yesterday said he would meet with Pelosi on Thursday morning before holding a news conference and
LOSE-LOSE-LOSE SCENARIO: TSMC’s chairman told CNN’s Fareed Zakaria a military invasion would render TSMC factories inoperable and that it would also hurt China If China invades Taiwan there would be no winners and everyone would lose, and people should draw lessons from the Russia-Ukraine war, which is not good for either side, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman Mark Liu (劉德音) told CNN. The interview on the Fareed Zakaria GPS program on Sunday came at a time of heightened cross-strait tensions amid a potential visit to Taiwan by US House of Representatives Speaker Nancy Pelosi. “People in Taiwan have earned their democratic system and they want to choose their way of life,” Liu said in the interview. “Indeed, chip supply is a critical business
SCHEDULE: Nancy Pelosi was expected to visit the legislature for about an hour before speaking with democracy advocates at Jingmei Human Rights Park US House of Representatives Speaker Nancy Pelosi arrived in Taipei last night and was reportedly scheduled to meet with President Tsai Ing-wen (蔡英文), legislators and democracy advocates before departing later today. The speaker departed from Kuala Lumpur yesterday afternoon and touched down at Taipei International Airport (Songshan airport) at about 10:43pm, where she was greeted by Minister of Foreign Affairs Joseph Wu (吳釗燮). The stop marks the first time in 25 years that a sitting US House speaker is visiting Taiwan. Beijing has strongly condemned the visit, with Chinese Ministry of Foreign Affairs spokeswoman Hua Chunying (華春瑩) yesterday warning that the US “will
MIDWAY ACTIVITY: A source said that Chinese aircraft conducted tactical moves of briefly ‘touching’ the median line of the Taiwan Strait before circling back from it The Ministry of National Defense yesterday raised its combat alertness level until noon tomorrow in response to Chinese live-fire exercises ahead of a visit to Taiwan by US House of Representatives Speaker Nancy Pelosi. The alert is to be adjusted depending on the military threat from the Chinese People’s Liberation Army (PLA), a source familiar with the matter said. However, the source added that combat readiness remains at “normal readiness” under the nation’s two-tier system and had not been raised to “emergency readiness.” Before Pelosi’s arrival yesterday, several Chinese warplanes flew close to the median line of the Taiwan Strait, another source told