They were accused of illegal loans of over NT$5 billion and other charges.
By: Teng Pei-ju, Taiwan News, Staff Writer
TAIPEI (Taiwan News) – SinoPac Holdings Chairman Ho Show-chung (何壽川) was held in custody
following prosecutors’ request to detain him over charges of illegal loans and violation of the Securities and Exchange Act (證券交易法), Taipei District Court ruled this afternoon.
Apart from Ho, Chang Chin-pang (張金榜), a manager at Yuen Foong Yu Paper Manufacturing Group (YFY, 永豐餘), and Liao I-min (廖怡愍), wife of the chairman of Sunpower Development & Construction Corporation (SDCC, 三寶建設), were also held incommunicado.
Ho and the other defendants are accused of having given illegal loans of over NT$5 billion to a non-operating paper company, J&R Trading Co.Ltd., through a re-investment offshore company, Grand Capital International Limited (CG), which is held entirely by SinoPac Leasing Corporation (永豐金租賃), a subordinate to SiniPac Holdings, since October 2009, prosecutors said.
In addition to the illegal loans, Ho gave loans to SDCC through SinoPac Holdings and to Star City, where his wife, surnamed Chang, had been a member of the board, both of which violated credit regulations among the same related parties or same affiliated enterprises, said prosecutors.