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Two tycoons brought down by ethics issues

Farglory Group (遠雄集團) Chairman Chao Teng-hsiung (趙藤雄) says he has decided to resign from his post as the Farglory Land Development Co. chairman, with the position to be assumed by his son and acting Chairman Chao Wen-chia (趙文嘉).

The elder Chao is expected to submit his resignation in a board meeting scheduled to be held on Aug. 13.

Chao Teng-hsiung was accused of handing out bribes in order to secure a public housing project in Bade District of Taoyuan County. After leaving the post, Chao will focus his time and efforts toward dealing with the accusations, said Farglory. Chao will also spend more time orchestrating the company's long-time strategy.

Chao Teng-hsiung was under the court's custody, but released in July on bail of NT$30 million. During Chao's absence, his son Chao Wen-chia had assumed the duties of acting chairman. Farglory Land Development Co. has had a stable operation during this period, Farglory said.

After leaving Farglory Land Development Co., Chao will still hold the chairman position of Farglory Group, and several companies under its umbrella, including Farglory Dome and Farglory Foundation.

Yuanta Securities Chairwoman to Serve Prison Term

Another local business tycoon suffered from troubles yesterday. Former Yuanta Securities Co. (元大證券) Chairwoman Judy Tu (杜麗莊) was summoned to serve her prison term over attempts to cover up losses derived from structured notes.

Tu was sentenced to seven years and four months in prison. In an announcement made yesterday, Tu stressed that she is not the type of person that would infringe on the rights of shareholders. Since Tu had no criminal record, if she is well behaved while behind bars she may be granted parole after three years and eight months.

In the company of her three children, Tu reported to Taipei District Prosecutors Office yesterday. Tu said that she believes the court will eventually rule in favor of her.

Rudy Ma (馬志玲), Tu's husband and the founder of Yuanta Financial Holding Co. (元大金控), received a similar penalty. However, because he is suffering from dementia, Ma's sentence has been put on hold. Tu claimed that she and Ma had never done anything to harm others. The truth has been distorted, and as such, they have not been treated fairly by the justice system, she said.

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Former Yuanta Securities Co. (元大證券) chairwoman Judy Tu (杜麗莊) speaks to the media at the Taipei District Prosecutors Office, yesterday. Accused of covering up losses derived from structured notes, Tu started her prison term of more than seven years yesterday.

(CNA)

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