Ex-Taipei 101 head indicted for fraud

Prosecutors said Lin was being indicted for embezzling at least NT$1.8 billion in assets from Jin Shang Chang Development Corp., a listed firm headed by Lin, in 1999; violating the Securities and Exchange Act and Business Entity Accounting Act; and committing document forgery and money laundering.

Lin was taken into custody by the Taipei District Prosecutors' Office on Sept. 27, 2012 for his alleged involvement in the embezzlement scandal. As the four-month detention will expire on Jan. 26, the office will request on Friday an extended detention of Lin.

The Taipei 101 management immediately announced termination of Lin's position as chairman after he was detained last September, but he remains vice chairman of Hung Kuo Real Estate Development Corp., which owns a 15.2-percent stake in Taipei 101.

Prosecutors said Lin's company, Jin Shang Chang Development, took out corporate loans of NT$1.8 billion from China United Trust and Investment Corp. in 1999 for property development dealings.

At the time, Lin offered several land lots in Tamsui, New Taipei City, as collateral for the loans, prosecutors said, adding that the loans were not repaid. To offset the bad debt, China United Trust and Investment sold the debt to several land development and construction firms, prosecutors added.

However, Jin Shang Chang did not report the bad debt on its financial statements, prosecutors said, and Lin was suspected of hollowing out the assets of the company and violating the Securities and Exchange Act.

Jin Shang Chang's general manager, Chen Chi-tsang, and chief financial officer, Tung Tsui-hua, as well as Hung Kuo's general manager, Lin Nan-tsong, were also indicted yesterday for their alleged roles in the scandal. Prosecutors did not request jail terms for them.

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