Chiu accuses president’s son-in-law of insider trading

Chiu told a press conference that Changhua Commercial Bank unloaded all its holding of 24,304,000 shares of Taiwan Development and Trust at a unit price of only NT$2 in June and July 2005, and all shares were purchased by Chao through his surrogate accounts, including those belonging to his mother Chien Shui-mian.

Chiu continued that when Changhua Bank decided to release all its stake in Taiwan Development and Trust, Chao went to visit Chang Po-hsin, the then chairman of the bank, agreeing to take over all the shares released by the bank at the price of NT$2 per share, lower than the market value of NT$2.5 then.

The KMT lawmaker said that Taiwan Development and Trust was then a delisted company. “If without insider information, who will dare to spend NT$50 million to buy delisted shares?” Chiu asked.

Taiwan Development and Trust successfully got a syndicated loan of NT$16.5 billion in August 2005 and then became a professional land development firm. The firm was listed again on the local bourse on March 1 this year, and its share price shot up to NT$18.95 yesterday. Chiu said through insider trading, Chao has enjoyed an investment return of up to 900 percent within 10 months, translating into profits of over NT$300 million.

“It’s no wonder that Chao was in a position to look for a luxurious mansion valued at over NT$100 million,” Chiu said ironically. Chiu said Chao can be termed as a “super stock god.”

In response, Chao said that his mother purchased the shares of Taiwan Development and Trust as a long-term investment, having nothing to do with him. Chao added that if he managed to score stock investment profits of NT$300-400 million, he would be willing to give NT$100 million to reporters questioning him on the issue.

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