TAIPEI (Taiwan News) — Hontai Group Chair Lin Hong-nan (林鴻南) was released on NT$10 million (US$310,000) bail by the Taipei District Prosecutors Office following an investigation on Tuesday into alleged irregular land transactions, per CNA.
The probe, initiated after findings by the Financial Supervisory Commission, centers on the sale of two plots of land in Tamsui. Investigators allege Lin directed his group to engage in self-dealing by transferring the properties between subsidiaries to raise cash while retaining assets expected to appreciate.
Authorities conducted raids at 12 locations, including Lin’s residence, that of former Hontai Life Insurance Chair Lu Huan-yi (魯奐毅), company offices, and other locations. A total of nine defendants, including Lin, and 18 witnesses were summoned for questioning, per CNA.
In addition to being granted bail, Lin has been barred from leaving the country or residing overseas. He faces charges of irregular trading under the Securities and Exchange Act.
Hontai Life Insurance (宏泰人壽) previously held multiple plots of land in Tamsui’s Danhai New Town. Due to insufficient development and utilization, the company received a warning letter from the FSC in November 2017 and was later fined NT$1 million for failing to comply with regulations.
In May 2019, the company announced plans to publicly auction two plots of land, identified as Lots 4 and 4-1 in Danhai New Town. Taihe Construction Management (泰和建築經理公司), a subsidiary of Hontai Group, ultimately purchased the land for NT$2.5 billion.
Prosecutors questioned Lin on suspicion of engaging in irregular trading under the Securities and Exchange Act and of breach of trust under the Insurance Act. His wife, Wang Wan-ling (王婉玲), was also questioned and released on NT$300,000 bail, while Lu was released on NT$8 million bail. Li Yi-hui (李怡慧), head of the land department at Hontai Group, was released on NT$5 million bail. All are barred from leaving the country or residing abroad.
In a statement issued Wednesday, Hontai Life Insurance said it respects the judicial process and will fully cooperate with investigators.
“The company has always adhered to the principles of legal and compliant operation and fair treatment of customers,” the statement said, according to CNA. “This case remains under investigation, and the relevant facts and details await clarification by judicial authorities.”
The company added that it will not comment on unverified information and urged the public to avoid speculation to preserve the integrity of the investigation. It also said operations and customer services remain unaffected, and policyholders’ rights have not been impacted.
