Former high-ranking official at CTBC Financial convicted, receiving prison time amidst property corruption case
In the Dock: Jeffrey Koo Jr and CTBC Financial's Property Scandal
Jeffrey Koo Jr, ex-vice chairman of CTBC Financial Holding Co and head honcho of the Chinese Taipei Baseball Association, faces seven years and eight months behind bars for his part in a hotProperty controversy. According to the Taipei District Court, this debacle revolves around a building deal from 2005, where CTBC Financial splurged NT$950 million, significantly higher than the NT$850 million fair market value, resulting in a whopping NT$100 million loss for the company.
The Securities and Exchange Act (證券交易法) was cited in the court's statement, highlighting that Koo and three associates contravened rules regulating transactions with related parties and breached trust.
Back in 2019, Koo and his colleague accomplices, namely former CTBC Financial chief financial officer Perry Chang, former CTBC Bank chief financial manager Lin Hsiang-hsi, and former CTBC Investment Service board member Lee Sheng-kai, were indicted for their roles in the property deal.
Despite the accusations, Koo and his peers maintain their innocence.
The court declared that the four defendants masterminded this transaction, causing disarray in the financial market and showcasing a callous attitude after the crime. Sentences for Chang, Lin, and Lee came in at eight years, nine years and six months, and nine years and four months respectively.
The ruling is provisional, with Koo temporarily banned from vacating the country. Other financial improprieties involving CTBC Financial, including irregularities with bad loans, continue to haunt the company. Koo's former brother-in-law, Chen Chun-che, a crucial figure in the building transaction and bad loan case, has fled the country and is now on the wanted list.
Toadd insult to injury, CTBC Financial argues that the court has misconstrued these transactions, asserting that the deals were actually advantageous to the company. The beleaguered organization continues to support Koo and his associates in their quest to clear their names.
The building and bad loan transactions initially came under investigation in 2004, when irregularities surfaced during a probe into a different financial scandal, involving an offshore "paper company," Red Fire Development. Last year, the Supreme Court ordered a retrial due to inadequate reasoning in a High Court judgment, which had acquitted Koo in the Red Fire case.
Koo stepped down from his position as vice chairman of CTBC Financial following his indictment in the Red Fire scandal in 2006 and now chairs the CTBC Charity Foundation.
As the unfolding events hint at a more profound oversight problem within CTBC Financial, the spotlight shines brighter on the company's adherence to financial regulations and ethical standards. Restoring trust and preventing similar incidents in the future demands heightened scrutiny and possible reforms.
- The controversial property deal involving CTBC Financial and Jeffrey Koo Jr, alongside associates Perry Chang, Lin Hsiang-hsi, and Lee Sheng-kai, is not just a general-news story, but also a matter of crime-and-justice, as the Securities and Exchange Act was cited in the court proceedings.
- The financial scandal surrounding CTBC Financial, which includes irregularities with property deals and bad loans, not only impacts their business operations but also raises questions about their adherence to financial regulations and ethical standards in the wider finance industry.
