The Supreme Court on Thursday ordered former CTBC Financial Holding Co vice chairman Jeffrey Koo Jr (辜仲諒) to be retried after overturning a High Court ruling that acquitted him on charges of breach of trust in a financial embezzlement case involving an offshore “paper company” named Red Fire Development.
The Supreme Court cited inadequate reasoning in the High Court’s decision, which had cleared Koo, 60, of allegations under the Banking Act (銀行法) and the Criminal Code despite causing significant financial losses to CTBC Bank.
However, it upheld the High Court’s ruling that acquitted Koo of money laundering and stock price manipulation. The decision is final.
Photo: CNA
Koo stepped down as vice chairman of CTBC Financial after he and other executives in the financial firm, including former CTBC Financial chief financial officer Perry Chang (張明田) and former CTBC Bank chief financial manager Lin Hsiang-hsi (林祥曦), were indicted in the case, nicknamed the “Red Fire” case, in 2006.
CTBC Bank in 2004 bought US$390 million worth of structured notes linked to Mega Financial Holding Co from issuer Barclays Bank PLC on instructions from Koo.
The purchase was made without approval from the bank’s board of directors, while the transaction was aimed at obtaining a stake in Mega Financial, prosecutors said.
However, CTBC Bank sold the structured securities at a lower price to Red Fire Development in what prosecutors deemed a “non-arm’s length” deal.
Koo and his executives manipulated Mega Financial’s share prices so Red Fire Development, which had been capitalized at just US$1, earned about NT$1 billion (US$31.32 million) in profit, the prosecutors said.
After the transaction, Red Fire Development wired the proceeds to several other offshore companies so that the illegal funds would not be traced, they added.
The prosecutors said Red Fire Development was not part of CTBC Financial and that Koo’s move to dispose of the structured bonds aimed to enable the paper company to make profits and caused a massive financial loss to the firm.
The High Court in December also found Chang and Lin not guilty of breach of trust, money laundering and stock price manipulation.
Koo, Chang and Lin were not found to have disposed of the structured bonds to Red Fire Development for their own interests, the High Court said in its ruling last year, adding that the transaction did not demonstrate their intent to hurt CTCB Financial’s interests.
However, the Supreme Court has ordered a retrial of Chang and Lin for breach of trust.
The Taipei District Court in 2010 found Koo guilty in the Red Fire case, citing the Securities and Exchange Act (證券交易法) and the Banking Act, handing Koo a nine-year sentence.
After an appeal, the High Court in 2013 ruled on the case, sentencing Koo to nine years and eight months in jail and imposing a fine of NT$150 million.
Then the Supreme Court in 2014 struck down the 2013 High Court ruling and ordered a retrial.
The High Court in 2018 handed Koo a sentence of three years and six months after he returned his illegal income from the scandal.
The High Court in 2021 reheard the case after a trial order from the Supreme Court, and ruled that Koo and his executives were not guilty of breach of trust or stock price manipulation.
The High Court in 2022 was ordered by the Supreme Court to rehear the case again and in December last year found Koo not guilty of breach of trust, money laundering and stock price manipulation.
Koo, the oldest son of the late CTBC Financial founder Jeffrey Koo Sr (辜濂松), rejoined the board of directors of CTBC Financial in May after being appointed as one of the new directors.
Taipei has once again made it to the top 100 in Oxford Economics’ Global Cities Index 2025 report, moving up five places from last year to 60. The annual index, which was published last month, evaluated 1,000 of the most populated metropolises based on five indices — economics, human capital, quality of life, environment and governance. New York maintained its top spot this year, placing first in the economics index thanks to the strength of its vibrant financial industry and economic stability. Taipei ranked 263rd in economics, 44th in human capital, 15th in quality of life, 284th for environment and 75th in governance,
The Sports Administration yesterday demanded an apology from the national table tennis association for barring 17-year-old Yeh Yi-tian (葉伊恬) from competing in the upcoming World Table Tennis (WTT) United States Smash tournament in Las Vegas this July. The sports agency said in a statement that the Chinese Taipei Table Tennis Association (CTTTA) must explain to the public why it withdrew Yeh from the WTT tournament in Las Vegas. The sports agency said it contacted the association to express its disapproval of the decision-making process after receiving a complaint from Yeh’s coach, Chuang
Control Yuan Secretary-General Lee Chun-yi (李俊俋) tendered his resignation last night, admitting that he had misused a government vehicle, as reported by media. His resignation was immediately accepted by the Control Yuan. In a statement explaining why he had resigned, Lee apologized for using a Control Yuan vehicle to transport his dog to a pet grooming salon on May 20. The issue first came to light late last month, when TVBS News reported that Lee had instructed his driver to take the dog to the salon. The news channel broadcast photos that it said were taken by an unnamed whistle-blower, which purportedly showed the
A former officer in China’s People’s Liberation Army (PLA) who witnessed the aftermath of the 1989 Tiananmen Square massacre has warned that Taiwan could face a similar fate if China attempts to unify the country by force. Li Xiaoming (李曉明), who was deployed to Beijing as a junior officer during the crackdown, said Taiwanese people should study the massacre carefully, because it offers a glimpse of what Beijing is willing to do to suppress dissent. “What happened in Tiananmen Square could happen in Taiwan too,” Li told CNA in a May 22 interview, ahead of the massacre’s 36th anniversary. “If Taiwanese students or
RSS