Jeffery Koo Jr. (???) and other executives with CTBC Financial Holding Co. (???) have been indicted for allegedly embezzling funds from the company, prosecutors said Wednesday.
Koo was charged on four counts of embezzlement, three of which involved the transfer of a combined US$300 million from CTBC Financial to accounts controlled by Koo and his father from 2004 to 2007.
The Special Investigation Division (SID) of the Supreme Prosecutors' Office said the two Koos teamed up with CTBC Financial executives to make the transfers.
In one of the cases cited by prosecutors during that time, the two Koos pocketed a combined US$27 million through a deal in which they used CTBC Financial's money to buy property located in Beijing.
Prosecutors also said they found that the younger Koo used part of the funds illegally transferred into his account to buy property located in the Tianmu area of Taipei.
Koo's father died in December 2012.
The other case for which Koo was indicted involved the use of funds from the group's insurance arm CTBC Life Insurance in 2014 and 2015 to purchase real estate assets from Gobo Group (????) at an unfairly high price, which helped Gobo profit from the deal.
Prosecutors said the asset purchases were aimed at securing the support of Gobo President Chu Guo-rong (???) for CTBC Financial's merger of Taiwan Life Insurance (????). Chu was one of the major shareholders of Taiwan Life at the time.
The younger Koo currently serves as chairman of the Chinatrust Charity Foundation, but prosecutors said he has long been the person responsible for the company's day-to-day operations, including during the periods of time when the funds were allegedly embezzled.
In addition to the younger Koo, Chu and other CTBC Financial executives have been charged by prosecutors with violating the Securities Exchange Act, the SID said.
In June, prosecutors launched a massive raid of offices and residences related to the fund embezzlement cases, and 94 people, including the younger Koo, Chu and CTBC executives, were summoned for questioning.
Prosecutors also said they found that the younger Koo used part of the US$300 million he illegally transferred into his account to buy property located in the Tianmu area of Taipei.
In response to the indictments announced by prosecutors, CTBC Financial said that the company's operations remained normal and that it hoped the judicial process will help the company get a clear picture of the facts as soon as possible.
Source: Focus Taiwan News Channel