ASSET MANAGERS NABBED IN TAIWAN LABOR FUND BRIBERY CASE
The CEO of PJ Asset Management Co. (PJAM) and three others were ordered detained and held incommunicado as part of a growing investigation into the alleged bribery of a Ministry of Labor (MOL) funds manager in a scheme to manipulate stock prices, Taiwan’s Central News Agency (CNA) reported.
The Taipei District Court approved the request by the Taipei District Prosecutors Office to detain PJAM CEO Daniel Tarng and executive Chiu Yu-yuan, as well as Fuh Hwa Securities Investment Trust Co. Chief Investment Officer Chiu Ming-chiang and asset manager Liu Chien-hsien on suspicion of violating the Securities and Exchange Act, Lin Chang-shun, Frances Huang and Matthew Mazzetta reported for CNA.
Prosecutors allege that Tarng and Chiu purchased a large number of shares of Far Eastern Group in April 2019, which they planned to sell off between April and July of this year. However, when the price of the stocks failed to rise as anticipated, the suspects allegedly contacted Yu Nai-wen, head of the domestic investment division of the Bureau of Labor Funds (BLF) at the MOL, seeking his help in using the government fund to purchase the stocks so they can unload them.
In July, executives from PJAM and Fuh Hwa met Yu at a restaurant in Taipei, where the latter agreed to purchase the stocks at artificially high prices using money from the labor fund, according to the prosecutors' office. Yu, who is alleged to have purchased more than 400,000 shares through the scheme in return for bribes, came under suspicion during a routine audit of the fund. Prosecutors later found that between July 27 and Sept. 8, Yu made repeated deposits of sums of money, ranging from NT$30,000 to NT$100,000, into his bank account, the prosecutors' office said.