Evergreen Marine director released on bail in insider trading probe

Taipei, July 7 (CNA) Chang Kuo-hua (張國華), a board director of Taiwanese shipping giant Evergreen Marine Corp., was released on NT$120 million (US$3.75 million) bail early Tuesday after prosecutors questioned him over allegations of insider trading involving the company's shares.

The Taipei District Prosecutors Office also barred Chang from leaving Taiwan or traveling by sea, ordered him not to change his residence, and required him to wear an electronic monitoring device.

Chang, who is in his early 70s, was among nine people accused by lawyer Lin Wen-peng (林文鵬) in April 2024 of insider trading involving Evergreen Marine shares in 2023. The group included members of Chang's immediate family, his brother Chang Kuo-cheng (張國政), and Evergreen Group executives.

Evergreen Marine is the flagship company of the Evergreen Group.

Lin, one of Evergreen Marine's shareholders, filed a complaint with prosecutors accusing Chang Kuo-hua and related parties of purchasing more than 90 million shares in the container shipping company on June 30, 2023, before Evergreen Marine publicly disclosed later that year that it would dispose of its stake in EVA Airways, the Evergreen Group's flagship international carrier, in August that year.

Lin accused Chang and his associates of insider trading, alleging they violated the Securities and Exchange Act by trading Evergreen Marine shares before the material information was publicly disclosed.

On Monday, Taipei prosecutors and police raided the homes of Chang Kuo-hua, Chang Kuo-cheng, and Evergreen Marine board director Ko Li-ching (柯麗卿), as well as the offices of Evergreen Marine and Evergreen International Corp. and several other locations.

The nine accused were also summoned by prosecutors on Monday for questioning.

On Tuesday morning, Chang Kuo-hua's wife, Yang Mei-chen (楊美珍), and his son, Chang Sheng-en (張聖恩), were each released on NT$5 million bail. Prosecutors also barred them from leaving Taiwan or traveling by sea and ordered them not to change their residence.

Chang Kuo-cheng was released on bail of NT$10 million and barred from leaving the country, traveling by sea, and changing his residence, while Evergreen Marine director Tai Ching-chuan (戴錦銓) and manager Hsieh Shu-hui (謝淑蕙) were released on bail of NT$3 million and NT$2 million, respectively, and barred from leaving the country, traveling by sea and changing residence.

Ko and two others were released without having to post bail.

In response to Lin's allegations, Chang Kuo-hua denied engaging in insider trading.

He said that since he bought Evergreen Marine shares in a block trade after the market closed on June 30, 2024, the ex-dividend date of the company, he has never disposed of any of the shares he bought in the particular transaction amid his enthusiasm toward the shipping business, and has so far not raked in any profit.

He also said the transaction was reported to the Taiwan Stock Exchange as required by law.

Chang Kuo-hua and Chang Kuo-cheng are the eldest and third sons of the late Evergreen Group founder Chang Yung-fa (張榮發). The group is a transportation conglomerate in Taiwan.