Acer spokesman faces insider trading charges

Acer spokesman faces insider trading charges

CNA
May 10, 2014, 12:00 am TWN

XA

TAIPEI — Two employees of Taiwan’s Acer Inc. (宏碁) and three other people were charged Friday by the New Taipei District Prosecutors Office as part of a probe into insider trading of the PC manufacturer’s shares.

Henry Tao-hsiung Wang (汪島雄), Acer’s public relations chief and acting spokesman, and Chen Chiung-yuan (陳炯淵), Acer’s senior manager, were charged, along with Lo Fang ju (羅方汝), an employee at a securities company, her ex-husband Tsao Chin-ming (曹晉銘) and Yang Chin-lung (楊金隆), a professional investor.

Three other suspects are not slated for prosecution.

The suspects stand accused of avoiding losses of more than NT$1 million (US$33,195) by divesting their shares in Acer late last year ahead of a report that the troubled PC vendor had suffered losses of NT$9.94 billion in the third quarter.

After learning about the serious losses of Acer in an internal meeting headed by then-Chairman and CEO J.T. (王振堂) Wang Nov. 1, 2013, Wang and Chen revealed the information to Lo and Yang, according to the indictment.

If the shares were traded with knowledge of the company’s losses and change in management, it would constitute a violation of the Securities and Exchange Act.

Lo, her ex-husband and others then sold their Acer shares before the public announcement of the losses, and bought the shares back later, acquiring illegal benefits of NT$1.37 million.

Yang made a similar move and accrued more than NT$800,000.

Once the world’s second-largest PC maker, Acer reported losses of NT$12.95 billion, or NT$4.76 per share, in the first three quarters of 2013.

 

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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