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Senior managers at Taiwan electronics firm AU Optronics indicted for scam

Scheme caused panel maker to lose NT$2.4 billion over 7 years

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A senior manager was involved in a fraud scheme which cost AU Optronics NT$2.4 billion. 

A senior manager was involved in a fraud scheme which cost AU Optronics NT$2.4 billion.  (CNA photo)

TAIPEI (Taiwan News) — Two senior managers at panel maker AU Optronics (AUO) and a partner were indicted Friday (Dec. 24) for a scam which cost the company NT$2.4 billion (US$86.49 million) over seven years.

The manager, named Su (蘇), allowed an outside businessman named Tsai (蔡) to buy AUO panels at a low price before reselling them for a profit, CNA reported. The Hsinchu District Prosecutors Office said the products ended up with customers in China.

Tsai used money-laundering techniques to pass payments on to Su, who used the accounts of unwitting relatives and spent the money on property.

He reportedly pocketed NT$93.37 million, while Tsai voluntarily turned over NT$10 million to investigators. Gong (宮), another AUO manager who joined the scheme later, reportedly obtained NT$100,000 in kickbacks and NT$6 million in other illegal income.

Su and Tsai were charged with violating the Securities and Exchange Act as well as breach of trust and money laundering, as they had inflicted large losses on the company and investors while damaging Taiwan’s economic competitiveness by funneling money to China, according to prosecutors. Gong faces the charges of Securities and Exchange Act violations and breach of trust.

A court approved the prosecutors’ request to keep Su detained, as they feared he might collude with other suspects and destroy evidence. Tsai and Gong were each released on NT$2 million bail, CNA reported.