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Taiwan ex-president's son-in-law sentenced to seven years for insider trading

Former president Chen Shui-bian's son-in-law Chao Chien-ming holds an evelop while walking into a trial court on Oct. 23.

Former president Chen Shui-bian's son-in-law Chao Chien-ming holds an evelop while walking into a trial court on Oct. 23.

TAIPEI (Taiwan News) - Now that former president Chen Shui-bian (陳水扁) has been taken into custody, there has still been a string of scandals directly or indirectly related to Chen's case and one of them is the snowballing insider-trading scandal allegedly involving Chen's son-in-law Chao Chien-ming (趙建銘).

Chao, a prime suspect in the Taiwan Development Corporation (TDC, 台灣土地開發) insider-trading scandal, appeared before the judge this morning as the High Court opened a trial into insider trading charges against Chao, his father, and other two defendants.

The High Court sentenced Chao to seven years and Chao's father to nine years in prison and NT$30 million on charges of violating the Securities and Exchange Act (證券交易法).

After the trial this morning, Chao said that although he was the then president's son-in-law, he did not know that his actions constituted insider trading. He said that he and his father would certainly appeal their sentences.

Also today's verdict sentenced another two defendants, businessman Yu Shih-yi (游世一) and former TDC chairman Su The-jien (蘇德建), the former was sentenced to seven years and two months with NT$60 million fine and the latter seven years with NT$30 million fine.

Insider trading has enveloped Chao's family since a Taipei prosecutor confirmed that a judicial investigation was launched into the case two years ago. The case stems from accusations leveled by an opposition lawmaker that Chao's mother Chien Shui-mien (簡水綿) made huge profits through insider trading of TDC shares. A prosecutor opened a probe and disclosed that the probe would focus on whether Chien made the profit through insider trading or whether her transactions violated other laws, and would also try to determine if others were involved in illegal activities. Chinese Nationalist Party (KMT) Legislator Chiu Yi (邱毅) accused that Chien made up to NT$100 million through the illegal transactions and that she was acting as a proxy for her son Chao.

Chao was detained in May 2006 following marathon questioning for his alleged role in a snowballing insider trading scandal role involving the shares of Taiwan Development Corp and he was released on bail in July the same year. The court issued a verdict in the first trial on Dec. 27, 2005 and sentence Chao to six years with NT$30 million fine, Chao's father eight-year sentence with NT$60 million fine, and Su four years and three months sentence.

Last year, the high court modified the previous charge and imposed a heavier verdict last year by sentencing Chao to seven years and his father to nine years and six months, Yu to seven years and two months, and Su to seven years and six months.

But, the Supreme Court believed that there were defects found in the previous verdict regarding the amount of money in the insider trading and sent back the case to the lower court.

Therefore, the case was remitted to the high court and today was the Taipei High Court's remitted trail. The verdict today remained the same as that of the second trial.

by Taiwan News, Website Editorial Staff


Updated : 2021-04-19 05:51 GMT+08:00