Taipei District Prosecutors’ Office yesterday dropped the charges against three XPEC Entertainment independent directors in a financial fraud case.
The office dropped the charges against media personality Sisy Chen (陳文茜), former minister of economic affairs Yin Chi-ming (尹啟銘) and former Taipei deputy mayor Lee Yong-ping (李永萍).
Evidence showed that XPEC chairman Aaron Hsu (許金龍) acted alone in stock manipulation and illegal transfer of assets for personal gain, causing a collective loss of NT$4.86 billion (US$160.76 million at the current exchange rate) for investors, Taipei Deputy Chief Prosecutor Chou Shih-yu (周士榆) said.
Prosecutors decided not to indict the three independent directors due to insufficient evidence on their involvement, Chou said.
The announcement was not welcomed by individual investors of XPEC who bore the brunt of the losses.
“I am very disappointed and feel very bad about the decision,” said a woman who gave her name only as Joy, who had previously headed the self-help association organized by victims of the fraud.
Financial records showed there are more than 200,000 individual investors who had bought XPEC shares.
“The three independent directors received millions of dollars to cover their expenses for performing their duty. However, when a financial fraud happens, why do these people not need to bear any responsibility?” Joy asked.
“What has become of the system of appointing independent directors to companies?” she said. “Independent directors are supposed to oversee the company’s finances, and prevent opaque and fraudulent practices.”
“However, company chairman Aaron Hsu was able to cover it up and supposedly carried out the whole thing all by himself. So what was the use of these independent directors? I was left speechless by the prosecutors’ decision to drop the charges,” she added.
Prosecutors earlier this year charged Hsu with violations of the Securities Exchange Act (證券交易法) and the Business Entity Accounting Act (商業會計法), and sought the maximum 30-year jail term for him.
Evidence showed that Hsu made illegal arrangements, undermined the company’s management, deceived the directors and executives, and colluded with outside firms to manipulate the XPEC stock price, prosecutors said.
They said Hsu colluded with two foreign firms, Zhejiang Century Huatong Group Co of China and Bai Chi Gan Tou Digital Entertainment Co of Japan to manipulate XPEC’s stock price through speculative and promotional news.
“Hsu used a shell company registered overseas to divert about NT$4 billion of illegal profits, then used the money to manipulate Taiwan’s stock market to make more money. His actions undermined the business interests of XPEC, created havoc on the stock market and resulted in significant financial losses for investors,” Hsu’s indictment said in January.
FEW REMAIN: Conservationists tried to stop the demolition, but to no avail, and the owner cannot be fined, as the structure was not listed as a historical building One of the few remaining Japanese colonial-era granaries in Taiwan was dismantled by its owner on Friday, prompting outrage from conservationists. The granary, which was at No. 16, Lane 11, Hangzhou S Rd Sec 1 in Taipei, belonged to Taiwan Takushoku Corp during the colonial era, conservationist Chang Wan-lin (張琬琳) said, adding that she and others had been collecting information to reapply to have the building protected as a historical structure. During the colonial era, the granary served the area from Monga (艋舺) to what is now Songshan District (松山) in the north, she said. “Back then the eastern part
SEEING THE POSITIVE: A majority of respondents in Taiwan said that they favored Trump because they think Taiwan-US ties would improve with him Among eight Asia-Pacific countries and regions, only Taiwan prefers US President Donald Trump over his challenger, former US vice president Joe Biden, in the upcoming US presidential election, a survey released on Thursday showed. According to the poll published by UK-based market research firm YouGov, 42 percent of Taiwanese favor Trump in the Nov. 3 election, while 30 percent back Biden and 28 percent have no opinion. In contrast, respondents in Malaysia favor Biden over Trump 62 percent to 9 percent, and in Singapore by 66 percent to 12 percent, the survey showed. Biden also led Trump in Australia (60 percent to 21
TROUBLEMAKER: The missiles, capable of striking up to 2,000km away, would likely be used to deter other nations from coming to Taiwan’s aid, a legislator said The Chinese People’s Liberation Army (PLA) has reportedly deployed advanced hypersonic missiles along China’s southeast coast, which Taiwan’s missile defense system might have difficulty intercepting, an analyst said yesterday. Citing an unnamed military source, the South China Morning Post said that the missile bases on the coasts of China’s Fujian and Zhejiang provinces have been upgraded and are stocked with DF-17 missiles, equipped with hypersonic glide vehicles. “The DF-17 hypersonic missile will gradually replace the old DF-11s and DF-15s that were deployed in the southeast region for decades,” said the source, who requested anonymity because of the sensitivity of the topic. “The
AIR CONTROL INCIDENT: The Hong Kong side said it ‘cannot accept this aircraft,’ ordering it to ascend to an unsafe altitude and forcing it to return to Kaohsiung The Civil Aeronautics Administration (CAA) on Friday disclosed a full transcript of the communications between Taiwanese and Hong Kong air traffic controllers, rebutting the latter’s claim that a Taiwanese plane had voluntarily abandoned its flight path. Hong Kong denied permission for the plane to proceed to the disputed Pratas Islands (Dongsha Islands, 東沙群島), which are claimed by both Taiwan and China, the CAA said. The incident happened on Thursday when a civil aircraft chartered by the military was advised by Hong Kong air traffic controllers to not enter the airspace over a group of islands in the South China Sea