TAIPEI (Taiwan News) — A government official responsible for making investments for Taiwan's Labor Insurance Fund and a private asset company executive are facing legal trouble for allegedly colluding to drive up the share price of a certain stock.
According to an investigation conducted by prosecutors and the Agency Against Corruption, a PJ Asset Management Co. investment executive surnamed Chiu (邱) in July allegedly began to bribe Bureau of Labor Funds (BLF) Domestic Investment Division Director Yu Nai-wen (游迺文) to use BLF accounts to buy shares of a certain company at a cost higher than market value so as to drive up the price, according to CNA.
The investigation found that more than 400 shares of the company had been purchased in that manner.
According to investigators, Yu’s average monthly credit card expenditures ranged from NT$150,000 (US$5,000) to NT$220,000 between September of 2012 and September of this year. It was also discovered that he had deposited nearly NT$9 million into his bank account during this period.
Chiu posted NT$300,000 bail on Friday (Nov. 27), while Yu is still detained.
The BLF issued a press release on Friday to state that its investment mechanism is not controlled by a single person and that BLF monies are invested in various debt and equities markets, both foreign and domestic, to achieve stable, long-term profits.