Supreme Court clears ex-CTBC vice chair of embezzlement

Taipei, Sept. 12 (CNA) The Supreme Court on Wednesday upheld two lower court rulings acquitting former CTBC Financial Holding Co. Vice Chairman Jeffrey Koo Jr. (辜仲諒) of embezzling company funds and other illegal financial dealings.

The Supreme Court's ruling is final and cannot be appealed.

The case started when the now-defunct Special Investigation Division of the Supreme Prosecutors' Office indicted Koo and other executives of CTBC Financial on four counts of embezzlement in 2016.

Three of the counts related to the transfer of a combined US$300 million from CTBC Financial to accounts controlled by Koo and his father, Jeffrey Koo Sr. (辜濂松) as well as his former brother-in-law, Steven Chen (陳俊哲), from 2004 to 2007.

Koo Jr. was also indicted for involvement in the use of funds from the group's insurance arm, CTBC Life Insurance Co., to purchase real estate from Global Funeral Services Corp. in 2014 and 2015.

Prosecutors alleged that Koo Jr.'s acquisitions from Global Funeral Services Corp. were made at an unreasonably high price, helping the latter profit and incurring losses of more than NT$100 million (US$31,092) for CTBC Life Insurance Co.

In August 2019, the Taipei District Court acquitted Koo of alleged embezzlement of about US$300 million from the financial institution and other financial crimes that reached into the upper echelons of Taiwan's major conglomerates and their subsidiaries, including Chu Guo-rong (朱國榮), former president of Global Funeral Services Corp., citing a lack of evidence.

However, Chu was sentenced by the district court to 12 years and four months in jail for insider trading and stock manipulation.

In April 2023, Koo was also cleared of embezzlement charges by the High Court but Chu was given a longer sentence of 16 years.

Despite an appeal against the decision on Koo's case by prosecutors, the Supreme Court on Wednesday upheld the not guilty verdict for Koo and maintained the 16-year sentence for Chu.

It also ruled that Koo and other defendants do not need to pay CTBC NT$117.55 million in compensation, a request made by the Securities and Futures Investors Protection Center in a lawsuit against Koo.