Taiwanese man arrested for hollowing out assets of 2 firms

Taiwanese man arrested for hollowing out assets of 2 firms
PHOTO: Reuters

TAIPEI, Taiwan -- A suspect who allegedly hollowed out the assets of two listed companies was arrested in Taipei in late November on charges of violating the Securities and Exchange Act, the Criminal Investigation Bureau (CIB) has announced.

The suspect, surnamed Tseng, was arrested in his residence in Taipei on Nov. 26. During the separate raids at his house and his offices, police authorities also confiscated the accounting documents, stock market transaction data and related materials for further investigations, the CIB said.

According to the CIB, Tseng allegedly misrepresented the financial statement of a company he founded to create a false impression of the company's financial strength to lure an Internet information company to place investment.

The scheme allegedly scammed over NT$240 million (S$10.3 million) from the Internet information company in question, it noted.

Meanwhile, Tseng also allegedly used the same scheme to convince another company into agreeing to merge with Tseng's Chinese herbal medicine company, it noted.

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