Chang Kuo-hua, a director on the board of Taiwanese shipping giant Evergreen Marine Corp, was yesterday released on NT$120 million (US$3.73 million) bail after prosecutors questioned him over allegations of insider trading.
The Taipei District Prosecutors’ Office barred Chang from leaving Taiwan, traveling by sea or changing his residence, and ordered him to wear an electronic monitoring device.
Chang, who is in his early 70s, was among nine people accused by lawyer Lin Wen-peng in April 2024 of insider trading involving Evergreen Marine shares in 2023. The group includes members of Chang’s immediate family, his brother Chang Kuo-cheng and Evergreen Group executives.
Evergreen Marine is the flagship company of the Evergreen Group.
Lin, an Evergreen Marine shareholder, filed a complaint with prosecutors accusing Chang Kuo-hua and other parties of purchasing more than 90 million shares in the container shipping company on June 30, 2023, before Evergreen Marine in August 2023 publicly disclosed that it would dispose of its stake in EVA Airways, the Evergreen Group’s flagship international carrier.
Lin accused Chang Kuo-hua and his associates of insider trading, saying they violated the Securities and Exchange Act by trading Evergreen Marine shares before the material information was publicly disclosed.
Taipei prosecutors and police on Monday raided the homes of Chang Kuo-hua, Chang Kuo-cheng and Evergreen Marine board director Ko Li-ching, 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.
Yesterday morning, Chang Kuo-hua’s wife, Yang Mei-chen, and his son Chang Sheng-en 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 NT$10 million bail and barred from leaving the country, traveling by sea or changing his residence, while Evergreen Marine director Tai Ching-chuan and manager Hsieh Shu-hui were released on NT$3 million and NT$2 million bail respectively, and barred from leaving the country, traveling by sea and changing their residence.
Ko and two others were released without having to post bail.
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, 2023, the company’s ex-dividend date, he has never disposed of any of the shares he bought in that transaction because he remained enthusiastic about the shipping business.
He also said the transaction was reported to the Taiwan Stock Exchange as required by law.
Chang Kuo-hua and Chang Kuo-cheng are respectively the eldest and the third sons of the late Evergreen Group founder Chang Yung-fa. Evergreen Group is a Taiwanese transportation conglomerate.
Source: TAIPEI TIMES