High Court clears tycoon in Sogo deal

The court said it found Douglas Hsu (徐旭東) had committed no crime when his company, Far Eastern Group — a cluster of hotels, construction, textiles and retailing businesses — bought Pacific Sogo in 2004.

“The case is a pure business investment but it is politicized and turned into a criminal matter so the savior of Sogo became the victim,” the group said in a statement.

“We hope Taiwan will set up a commercial court soon to ensure order and justice in the market,” it said.

Local media had claimed Hsu used gift vouchers to secure the backing of Wu Shu-chen, wife of then president Chen Shui-bian, in the controversial buyout.

The allegations prompted Chen to go on television in 2006 to claim that his wife had done nothing wrong and pledged to quit if she were found guilty of any offence in the case.

Tuesday's decision came after Hsu was acquitted in 2008 but prosecutors appealed.

Chen left office in 2008, and he and his wife were convicted the following year of embezzling state funds, laundering money, and accepting bribes, giving both of them a sentence of life in prison.

The High Court in June reduced the couple's sentences to 20 years after concluding that less money was embezzled than previously assumed. They are currently appealing the second, lesser sentence.

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