SinoPac Holdings Chairman and two others detained

They were accused of illegal loans of over NT$5 billion and other charges.

SinoPac Holdings Chairman Ho Show-chung was detained. (Source: CNA)

TAIPEI (Taiwan News) – SinoPac Holdings Chairman Ho Show-chung (何壽川) was held in custody following prosecutors’ request to detain him over charges of illegal loans and violation of the Securities and Exchange Act (證券交易法), Taipei District Court ruled this afternoon.

Apart from Ho, Chang Chin-pang (張金榜), manager at Yuen Foong Yu Paper Manufacturing Group (YFY, 永豐餘), and Liao I-min (廖怡愍), wife of the chairman of Sunpower Development & Construction Corporation (SDCC, 三寶建設), were also held incommunicado.

Ho and the other defendants are accused of having given illegal loans of over NT$5 billion to a non-operating paper company, J&R Trading Co.Ltd., through a re-investment offshore company, Grand Capital International Limited (CG), which is held entirely by SinoPac Leasing Corporation (永豐金租賃), a subordinate to SiniPac Holdings, since October 2009, prosecutors said.

In addition to the illegal loans, Ho gave loans to SDCC through SinoPac Holdings and to Star City, where his wife, surnamed Chang, had been a member of the board, both of which violated credit regulations among the same related parties or same affiliated enterprises, said prosecutors.

The detention court took place from 10 p.m. Saturday until 11:40 a.m. on Sunday with adjournments in between. The ruling on the detention came at 1 p.m.

Prosecutors searched Ho’s offices and home located in Taipei City and New Taipei City on June 16, and summoned Ho and a total of 23 other people for questioning.

After the questioning, prosecutors requested that Ho, Chang, and Liao be detained on June 17 in case of collusion, destruction of evidence, and flight, said prosecutors.

Li Chun-chien (李俊傑), chairman of SDCC, is in China for the moment and therefore has not answered the summons.

Additionally, SinoPac Holdings President Yu Kuo-chi (游國治), YFY Chairperson Chiu Hsiu-ying (邱秀瑩) and Accounting Manager Wu Chung-fu  (吳忠福) received bails of NT$5 million, NT$2.5 million and NT$500,000, respectively. All three were barred from leaving the country.

Other defendants and defense witnesses were released after the questionings, including Ho’s wife Chang Hsing-ju (張杏如), Chen Chia-hsing, vice general manager at Bank SinoPa, and Chan Shun-hsiang (詹舜翔), manager of the legal department at YFY.

Chiu Cheng-hsiung (邱正雄), deputy chairman of SinoPac Holding, is due to hold a press conference this afternoon.