Former Chinatrust Financial Holding Co (中信金控) vice chairman Jeffrey Koo Jr (辜仲諒) was yesterday sentenced to nine years and eight months in prison by the Taiwan High Court over his company’s illegal purchase of a stake in Mega Financial Holding Co (兆豐金控).
In October 2010, Koo was sentenced to nine years in prison by the Taipei District Court.
The High Court yesterday sentenced Koo to nine years and eight months in prison and fined him NT$150 million (US$5 million).
Koo can appeal the ruling to the Supreme Court, the High Court said.
In the ruling yesterday, the court said Koo had violated the Securities Exchange Act (證券交易法) and the Banking Act (銀行法).
According to the ruling, Koo and several company executives used NT$27.5 billion to buy a 9.9 percent stake in Mega Financial through a Hong Kong branch of Chinatrust in 2004, without the approval of the Chinatrust board.
The deal included the illegal purchase of US$390 million in loan notes, convertible into Mega shares, using money earmarked for deposits, it said, adding that profits from the transaction were locked in through insider trading.
The case, dubbed the Red Fire Case after the name of the offshore company used to conduct the operation, surfaced following prosecutors’ investigations into a bid by Chinatrust Financial to take over Mega Financial.
The ruling said Red Fire Developments, capitalized at US$1, was set up in Hong Kong under Koo’s instruction. Koo made US$30.47 million in profit from the illegal trading and did not return the profit to his company, it said.
“Koo made Red Fire Developments his private treasure and used it to collect illegal profits. Those illegal actions harmed Chinatrust and the principle of fairness in the local market,” the ruling said.
GREATER NUMBER: The sorties might have been a response to the US and the EU expressing concern on Friday over China’s ‘provocations’ in the Taiwan Strait Twenty-five Chinese military aircraft and four naval ships were detected around Taiwan from 6am Saturday to 6am yesterday, including eight airplanes that had crossed the median line of the Taiwan Strait and another two that entered Taiwan’s air defense identification zone (ADIZ). The People’s Liberation Army (PLA) aircraft that entered Taiwan’s southwestern ADIZ were a Y-8 anti-submarine plane and a BZK-005 uncrewed aerial vehicle, the Ministry of National Defense said. The aircraft that flew across the median line include two Sukhoi Su-30 fighter jets, four J-16 multipurpose fighters and two J-10 jets, the ministry’s official Web site showed. Taiwan’s armed forces monitored the
Mask easing: Teachers are allowed to take their masks off while lecturing indoors, but students should keep theirs on, as COVID-19 measures ease this week The Ministry of Education (MOE) yesterday released new on-campus COVID-19 prevention guidelines, stating that masks can be taken off while exercising, singing, dancing, performing, taking photographs, dining, drinking, video and voice recording, hosting events, presenting speeches and lecturing outdoors. Large outdoor events organized by schools should comply with the mask regulations issued by the Central Epidemic Command Center (CECC), it added. The new guidelines came into effect yesterday, and people in Taiwan are no longer required to wear masks outdoors for the first time since May 19 last year. The CECC announced the easing of the mask mandate on Monday, adding that it
LUNAR NEW YEAR PEAK: Taiwanese who are in China should get vaccinated and consider returning early, as infection rates are expected to increase, the CECC said China faces five major problems once COVID-19 begins spreading there, with a peak in infections likely during the Lunar New Year holidays, Deputy Minister of Health and Welfare Victor Wang (王必勝), who heads the Central Epidemic Command Center (CECC), said yesterday. Wang wrote on Facebook that according to the center’s data, the increasing number of COVID-19 cases in China is worth noting, as the new Omicron subvariants BF.7 and BA.5.2 spreading in China are highly infectious and are more transmissible than the previously dominating Omicron subvariants. “The virus cannot be eliminated even under China’s strict control measures,” he wrote. “Its policy
‘SEXUAL ASSAULT’: Taipei prosecutors said that cooperation agreements between Taiwan and the Czech Republic grant Czech officials protection against prosecution The Taipei District Prosecutors’ Office yesterday reaffirmed that it would not charge a Czech official with sexual assault because he is protected by diplomatic immunity. The office released a statement saying it has verified that the man works for the Czech Economic and Cultural Office Taipei’s foreign affairs corps and is thereby protected from criminal prosecution. A foreign graduate student in Taiwan had filed a complaint alleging that the section head of the Czech Economic and Trade Section had sexually assaulted her on April 21 last year. The woman said the Czech official had invited her to his home and then forced her