TAIPEI (Taiwan News) — A former senior deputy CEO at iPhone maker Foxconn Technology Group will have to pay the company compensation totaling US$773,744 for having accepted kickbacks, a court ruled Tuesday (Jan. 19).
Appeals are still possible against the verdict for Liao Wan-cheng (廖萬城), who once ran the group’s Surface Mount Technology division overseeing the procurement of equipment and raw materials as well as tenders for contracts, CNA reported.
According to the suit brought by Foxconn, the businessman used his position between Aug. 1, 2006, and Dec. 12, 2011, to receive kickbacks from suppliers through a representative.
The Taiwan High Court agreed with the company’s view that Liao had broken the stipulations of the Foxconn contract he signed when joining the company. At the time, he had signed a document promising not to accept any special benefits from business partners and to respect intellectual property rights, Foxconn said.
While Liao argued his actions had not harmed the company and that he had only served as an adviser on the transactions without the power of decision, the court still judged that he had violated the contract and therefore should pay Foxconn the US$773,744 in profit from the deals.
In a separate verdict related to the same case, the Taiwan High Court ruled last November that Liao should serve two years in prison for breach of trust, but the case is now pending with the Supreme Court.