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Ex-Tatung chairman given eight years for embezzlement

2019/05/30 14:17:25

Lin Wei-shan, the former chairman of Tatung Co. /CNA file photo

Taipei, May 30 (CNA) Taiwan's Supreme Court upheld a lower court ruling Wednesday ordering Lin Wei-shan (林蔚山), the former chairman of Tatung Co., a leading Taiwanese home appliance maker, to serve eight years in prison and pay a fine of NT$300 million (US$9.50 million) for aggravated breach of trust under the Securities Exchange Act.

In the Supreme Court's final ruling, Lin was also ordered to return NT$1.3 billion in illegal gains.

The Supreme Court said in a statement that Lin funneled funds into debt-ridden Nature Worldwide Technology Corp. that he funded personally in 2005 from a subsidiary of Tatung and arranged another Tatung subsidiary to illegally acquire Nature Worldwide Technology Corp. in order to save the company from financial woes.

According to the statement, Tatung incurred a debt of NT$1.7 billion due to Lin's actions because its subsidiary was obliged to pay debts owed by Nature Worldwide Technology after it acquired the debt-ridden firm in 2007.

Lin actions also prompted the Securities and Futures Investors Protection Center to file a class-action lawsuit against him.

In June 2012, the New Taipei City District Court sentenced him to four years and six months in jail for misappropriating his company's assets through investments and fake transactions, hurting investors and violating the Securities Exchange Act.

The Taiwan High Court in August 2014 gave Lin an eight year prison sentence for embezzling corporate funds and violating the Securities Exchange Act.

In his first retrial in August 2017, the High Court upheld its previous ruling that sentenced him to eight years in jail, as well as NT$300 million in fines, and ordered him to return NT$1.3 billion in illegal gains.

Lin then filed an appeal to the Supreme Court, which was rejected Wednesday.

(By Jeffrey Wu and Evelyn Kao)