The Supreme Court Friday revoked a high court's verdict against President Chen Shui-bian’s son-in-law Chao Chien-ming who was found guilty of insider trading and sentenced to seven years in prison.
The Supreme Court sent the case back to the high court, noting it failed to make detailed calculations of illegal profits made by Chao and others in the scandal surrounding Taiwan Development Corp.
For insider trading, the amount of illicit gains plays a decisive role in dealing sentences ranging from three years to 10 years. Those found gaining over NT$100 million are subject to at least seven years in jail.
The high court concluded in June this year Chao made more than NT$100 million from insider trading but the Supreme Court expressed reservations about the amount’s accuracy. To redress the issue, it demanded that the high court retry the case and return a new ruling.
The Supreme Court also revoked the ruling on other defendants in the case, including Chao's father Chao Yu-chu, who was sentenced to nine years and six months plus a fine of NT$30 million.
The high court sentences for two other defendants in the case -- Yu Shi-yi and former TDC Chairman Su Teh-chien -- were also revoked by the Supreme Court.
Yu received a sentence of seven years and two months in prison in addition to a fine of NT$60 million (US$1.83 million), while Su was given seven years and six months and a fine of NT$30 million, in the second instance.
The case stemmed from a dinner party attended by the younger Chao and then-TDC Chairman Su Teh-chien July 14, 2005, during which Chao learned that the ailing TDC was to obtain a syndicated loan from several banks.
He relayed the information to his father, who bid for 5,000,000 shares July 25, 2005 and sold them after the banks approved the loan.
Su did not engage in insider trading but was found guilty of tipping off the Chaos. Yu is a friend of the Chaos and was also present at the dinner party and bought TDC stocks along with them.