Chen Yun-nan, director of the special investigative unit under the Supreme Prosecutors’ Office, told reporters that the case involving Formosa Telecom Investment is “unrelated” to the insider trading case involving Powerchip Semiconductor Corp. currently under investigation.

Apple Daily reported that while investigating Powerchip Semiconductor chairman Frank Huang’s involvement in the insider trading case, prosecutors found that Huang reached an agreement with Ker Chien-ming, DPP legislative caucus convener, in July 1998 while Ker was president of Formosa Telecom Investment to use NT$525 million (US$17 million)of Formosa Telecom Investment’s funds to buy additional shares issued by Powerchip Semiconductor.

According to the report, the transaction netted a profit of at least NT$200 million, but prosecutors have found that the funds used to buy the shares and the profits were never given to Formosa Telecom Investment.

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