Tuesday, December 21, 2004
Taipei Prosecutors Office recommended that Hu Hung Chiu, former chairman of Mosel Vitelic Group and vice president of the defunct Pacific Electric & Wire Co., be jailed for 20 years for NT$ 18 billion fraud. Along with Hu, Taipei prosecutors also indicted six people on charges of embezzlement and offences against the Securities Exchange Law for allegedly stealing huge amounts of company funds from the Pacific Electric Wire and Cable Co.
These five people are Tung Yu Chieh, Tung Ching Yun and Jack Sun, former vice chairman Miao Chu Yi and former secretary to the chairman Huang Ching Lin. Originally prosecutors were just investigating Hu, but they also discovered that both Tung Ching Yun and Miao had been using similar means of "transfer" the money off the island.
For purposes of efficiency, prosecutors decided to combine all three cases. "These six people allegedly embezzled approximately NT$20 billion from the company (Pacific Electric). [The offences] are not related to each other but they used the same scenario to commit the crimes," Lin Bang Lang, spokesman for the Taipei District Prosecutors' Office said.
Prosecutors' investigation showed that Hu took his position at Pacific Electric as the chief financial officer from 1993 to 1998 and established at least 146 subsidiary companies in Hong Kong and Virgin Islands. However, these 146 "subsidiary companies" were all dummy accounts, which Hu used to carry out money laundering for the funds he stole from Pacific Electric.
On July 14 this year, Chu interrogated three employees of one subsidiary company that Hu established in Hong Kong. Prosecutors said that they got in touch with them in May and they were encouraging the three witnesses to fly to Taiwan and testify in court. However, Chu decided to fly to Hong Kong in person because these three witnesses refused to fly to Taiwan due to a fear of being charged, indicted or detained by the Taiwan's judicial officers over their involvement in the case. Taipei Prosecutor Office also recommended Hu's assets at home and abroad should be put into custody in preparation for returning to Pacific Electric sometime in the future.
By: DocMemory
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