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Supreme court orders retrial of Chao's insider trading case

Supreme court orders retrial of Chao's insider trading case

The Supreme Court revoked yesterday a Taiwan High Court ruling that gave a seven-year sentence to President Chen Shui-bian's (陳水扁) son-in-law Chao Chien-ming (趙建銘) for his role in an insider trading scandal involving Taiwan Development Corp. stock.
The high court sentenced Chao to seven years in prison plus a fine of NT$30 million (US$$915,383) June 26 on insider trading charges, a penalty harsher than a six-year sentence handed down in the first trial by the Taipei District Court December 27 last year. Chao then appealed his case to the Supreme Court.
The Supreme Court demanded that the High Court retry the case and return a new ruling.
The Supreme Court also revoked the High Court 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 stems 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 loss-making TDC was to be bailed out by 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 to TDC.
Su did not engage in insider trading but was found guilty of tipping off the Chaos.
Yu is a friend of the Chaos who was also present at the dinner party and bought TDC stocks along with them.


Updated : 2021-07-24 13:57 GMT+08:00