Chairman's sentencing hurts Eastern Media stock
By Kathryn Chiu, The China PostTAIPEI, Taiwan -- Despite being positioned for third-party online payment business, Eastern Media International Corp. (東森國際) shares yesterday plummeted a daily maximum of 7 percent due to its chairman being sentenced to five years in prison.
August 16, 2013, 12:02 am TWN
Third-party online payment concept stock Eastern Media yesterday opened down 6.99 percent under tremendous sell-off pressure spurred by a report on the company's chairman and failed to make a rebound through the end of yesterday's session.
Eastern Media International yesterday dropped NT$0.42 or 6.99 percent — the maximum daily decrease according to Taiwan's stock exchange regulation — and closed at NT$5.59.
Taiwan's Supreme Court on Wednesday upheld a lower court's verdict against Gary Wang (王令麟) along with his four siblings over charges of embezzlement committed in 2007.
Speaking about the impact of Eastern Media International, Vice General Manager Cheng Yin-na (鄭應娜) yesterday reiterated Eastern Media's compliance with Taiwan's company law and adherence to corporate governance.
In a company announcement, Cheng intended Eastern Media to make a clean break from Gary Wang, saying that the judicial sentence is only Wang's family matter and Eastern Media has always operated as an independent company for the longest time.
Gary Wang Running for ROCCOC Chairman
United Evening News quoted sources reporting that Gary Wang remained calm after hearing of the Supreme Court's verdict and is deliberating on the possibility of filing a special appeal.
However, Gary Wang's ambition to become next chairman of General Chamber of Commerce (ROCCOC, 全國商業總會) could be set back due to the Supreme Court's decision.
According to local news reports, current ROCCOC Chairman Chang pen-Tsao (張平沼) has promised to canvass for Gary Wang.
The Supreme Court on Wednesday reached a verdict based on the findings that the Wang family members, who were appointed to senior positions in various companies in the group, defrauded investors and banks of billions of dollars by means of false accounting and other fraudulent actions over a long period of time.
The scandalous embezzlement case of the Wang family can trace back to 2006. It started from Rebar Group, a large corporation involved in domestic textiles, construction; hotel and real estate, retail services; vehicle and building insurance; and banking and media in 2000s.
Toward the end of 2006 Rebar was encouraging serious difficulties following years of allegedly hiding financial problems with bad loans of subsidiary The Chinese Bank (中華銀行). Then chief executive officer and the founder, Wang You-theng (王又曾), were alleged to have engaged in insider trading and embezzlement in connection to this, and fled Taiwan on Dec. 30. 2006, days before prosecutors began their investigation.
Wang You-theng is currently in the U.S., whose money is frozen by U.S. banks and is wanted by Taiwan's prosecutors for allegedly embezzling NT$60 billion in corporate funds. His five children, including Garry Wang, was implicated in the case doubling executives of a bunch of subsidiaries and vouchers.