Taipei City Councilor Chen Cheng-chung sentenced to 6 years in prison

Taipei, July 18 (CNA) The Supreme Court on Wednesday rejected an appeal by independent Taipei City Councilor Chen Cheng-chung (陳政忠), upholding the cumulative six-year prison sentence for violations of the Securities and Exchange Act issued by the High Court court.

The High Court had sentenced Chen to four years in prison for manipulating the stockof Hongfu Construction, a property development company in which he was a founder and shareholder.

The court also sentenced Chen to another two years of jail time for providing false or misleading information in a company prospectus that formed part of its application for approval for public offering.

According to a statement from the Supreme Court, the ruling is final and prosecutors should implement escape prevention measures against the guilty party.

The case started in 2001, when the Taipei District Prosecutors Office indicted Chen for stock manipulation.

Chen, who has been serving as Taipei City councilor since 1985, was accused of hollowing out of the property development company's assets and stealing up to NT$6 billion (US$183.78 million) from the business since 1993.

In the first trial against Chen in 2006, the Taipei District Court handed down a 20-year sentence for stock manipulation, breach of trust and misrepresentation in a company prospectus, but the High Court later reduced the sentence to nine years.

Since then, Chen has appealed his case multiple times, both winning and losing various retrials.

The Supreme Court's judgement on Wednesday, upholding the High Court's cumulative six-year prison sentence, represents the culmination of a legal battle lasting more than two decades between prosecutors and the long-time city councilor.

The Taipei City Council said on Wednesday that Chen must be dismissed in accordance with the the relevant provisions of the Local Government Act and the Public officials Election And Recall Act.