Dee Hsu’s husband, Mike Hsu, and father-in-law charged with insider trading in Top Pot bakery case

Dee Hsu’s husband, Mike Hsu, and father-in-law charged with insider trading in Top Pot bakery case

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Wednesday, January 29, 2014 – 14:16

The China Post/Asia News Network

TAIPEI – The Taipei District Prosecutors’ Office concluded its investigation over the case of Top Pot Bakery, which involved alleged deceptive advertising and insider trading, and indicted four people including businessman Mike Hsu, the husband of talk show host Dee Hsu, on Tuesday.

According to the office, Mike Hsu denied the insider trading charges, saying he sold the stock as an investor and did not receive inside information in advance.

However, the other three defendants confessed that there was a contact group among all the shareholders as well as operators of the company, which illegally distributed confidential information for the purposes of stock trades.

Prosecutors pointed out that the defendants are being charged with violations of the Securities and Exchange Act and suggested that the court hand out severe punishment to Mike Hsu since he denies involvement in any illegal activity. Hsu, if found guilty, could face a three- to 10-year prison sentence.

As for the other defendants – Hsu Ching-hsiang, father of Mike Hsu; Hsu Hsun-ping, the president of the bakery, and his wife Jiang Li-fen – prosecutors suggested a prison sentence starting at 1 1/2 years given their confessions.

The case of Top Pot Bakery started with allegations of artificial essences being added to the famous bakery’s products, despite its claims of all-natural flavours.

While investigating the deceptive advertising case, prosecutors found evidence suggesting that insider trading had taken place.

For deceptive advertising, prosecutors fined the company NT$180,000 (S$7570).

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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