BenQ Chairman K.Y. Lee deemed innocent for now
Insider trading rocks BenQ but prosecutors deem its Chairman innocent for now
When it rains, it pours at BenQ. Just last month, BenQ announced that it would be dissolving its BenQ-Siemens operations, after releasing financial reports that indicated severe losses. Interestingly, Siemens announced a network partnership with Nokia just one month before BenQ proclaimed its BenQ-Siemens partnership a loss. Shortly after that, Siemens was raided on suspicions of embezzlement and bribery by executives.
Reports indicate that BenQ's senior vice president and chief financial officer Eric Yu is detained for questioning. Prosecutors are trying to determine whether or not he and or other executives were involved in insider trading before the company declared shutdown of its Germany-based BenQ Mobile last year. Prosecutors in Taiwan reported that BenQ might have sold shares before officially announcing the take down of BenQ Mobile, thereby saving executive investment dollars, but leaving Joe Smith investor oblivious to the oncoming change. BenQ decided to shutdown BenQ Mobile after failing to turn around the money losing company.
BenQ Mobile posted a loss of $371 million during the term from July to September -- twice as large as market expectations. According to chief prosecutor Chang Chin-feng, thirteen executives from BenQ are now in jail, six of which are on bail. Unfortunately for Yu, he does not have the option of being released on bail. Reports indicated that Yu can be detained for up to four months.
Despite the coupe, BenQ's Chairman K.Y. Lee was left out of the investigation, although exact reasons were not released. BenQ stated that it was cooperating with prosecutors.
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