Yuanta probed for breach of trust, insider trading

The Taipei District Prosecutors’ Office is probing YCPS’ purchase of structured notes of Yuanta Securities Investment Trust (YSIT), and its purchase of Green Point Enterprises’ shares, a senior prosecutor, Lin Chin-tsun, was cited by the Central News Agency as saying.

The prosecutors office revealed that it started the probe after receiving a report from the Cabinet’s Financial Supervisory Commission in June, according to CNA.

According to a media report, Yuanta group President Ma Chih-ling and his wife, YCPS Chairwoman Judy Tu, in May 2005 had YCPS loan NT$4.8 billion to four investment firms for a purchase of structured notes from the money-losing YIST.

In September 2005, the couple again had YCPS extend a loan to one of the four investment firms for it to purchase NT$8.7 billion YIST structured notes, which were later resold to YCPS at a higher price, the report alleged.

The report claimed that the couple reaped NT$600 million in undue profits from the purchases.

The report also claimed that YIST was involved in alleged insider trading when it bought Green Point shares shortly before the electronics firm announced a merger with an U.S. company in 2006.

YIST was cited by the CNA as saying that the structured notes were handled according to the law.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email