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Kaohsiung Prosecutors’ Office Probe Unlisted Securities Fraud

  • Publication Date:
  • Last updated:2020-02-18
  • View count:759

Cheng and Wu, the managers of company Z, are alleged that they forged deposit records of company Z in May 2016 to falsify its capital from 10 million to 110 million NTD. Suspect Cheng and Wu then conspired with Pan, who is in the knowleged of company Z’s false capital increase, merged Company Z with Company K. With stock of Company Z in exchange with stock of Company K in same price, Company K then became the existing companty with captial 125 million NTD.

 

        With the knowlege that company K being still in deficit, Cheng, Wu and Pan forged false evaluation report of risks of investment and financial statement, which stated that company K made its IPO on 15. June 2018. The brokers the sold the stocks of company K in black stock market from June and July 2018. Trusting the false statement of profit of company K, investers purchased stocks of company K with price from 96 to 125 NTD per share. After preliminary inveistigation, the prosecutors estimate that these three suspects gained proceeds of security fraud by approximately 80 million NTD.

 

        Cheng, Wu and Pan are detained and held in custody after prosecutors’ interrogation. One other suspect, Lin, who assited Cheng to hide the illicit gains were in 50 thousand NTD bail. The further investigation will uncover the details of the wrongdoings.

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