Monday, December 20, 2004
The chairman of one of Taiwan's oldest technology-based firms, memory maker Mosel-Vitelic Inc., has been indicted for allegedly embezzling more than $520 million from a company he once worked for as chief financial officer.
Taipei prosecutors have charged Hu Hung-chiu, along with five others, with using offshore shell companies to bilk huge amounts of money from Pacific Electric Wire and Cable Co. If found guilty the Mosel chairman faces up to 20 years in jail and a fine of around $30 million.
Hu was originally detained in early November, but not charged. At the time, he was suspected of bilking Pacific Electric of more than $1 billion. In August, he resigned as the chairman of ProMOS Technologies — once a joint venture between Mosel and German memory maker Infineon Technologies AG — while under suspicion of the alleged embezzlement. He is still a board director and holds a minority stake in the contract memory maker.
As a company, Mosel is the largest shareholder in ProMOS.
Hu served as CFO of Pacific Electric in the mid-90s. During that time he set up more than 140 subsidiaries in Hong Kong and the Virgin Islands, according to reports. Those companies were allegedly used to siphon off money.
Hu is also accused of manipulating the company's stock price.
By: DocMemory
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