MediaTek-MStar insider trading sees six indicted
February 21, 2014, 12:06 am TWN
TAIPEI--Six people, including a former executive of MediaTek Inc., were indicted Thursday for insider trading linked to a plan by the leading integrated circuit designer to acquire its smaller rival, MStar Semiconductor Inc., in 2012.
Given that all the six defendants have voluntarily surrendered the illicit gains they made, prosecutors are asking for lenient sentences for them.
Lu Hsiang-cheng, a former head of MediaTek's China operations, is accused of buying 50,000 MStar shares before the merger plan was made public June 22, 2012, according to the indictment issued by the Taipei District Prosecutors Office.
Lu allegedly made NT$1.25 million (US$41,256) from the transactions. He resigned after prosecutors launched an investigation into the case.
Also indicted were four MStar employees and a family member, who allegedly made between NT$10,000 and NT$5.41 million from similar transactions.
They were named as Secretary to the Chairman Huang Yu-chi, her husband Li Chia-hsin, Senior Marketing Manager Jen Li-huan and engineers Lan Chi-han and Wang Ching-wen.