FSITC chairman sacked over rogue trader case

The China Post news staff

TAIPEI, Taiwan — The Ministry of Financial Affairs (MOFA) yesterday sacked the chairman of the First Securities Investment Trust Co., Ltd. (FSITC) after prosecutors charged three fund managers from the government-invested firm for making illegal investments.  Hung Hsin-shih (洪新湜), who offered to resigned late Sunday, was replaced by FSITC Vice President Xue Shu-mei (薛淑梅) as acting chairperson. The Taipei District Prosecutors Office on Saturday charged FSITC senior assistant managers Qiao Ren-jie (喬仁傑), Hsu Xun-cheng (許訓誠) and fund manager Hsu hong-zheng (許弘政) for allegedly colluding with insiders from technology company Prescope Technologies in illegal stock investments.

The firm said Friday that the three fund managers who were allegedly involved in manipulating the prices of Prescope Technologies Co. shares have been fired.

The three allegedly used a total of NT$50 million FSITC funds under their management to lift up Prescope share prizes in exchange for some NT$4 million in kickbacks, according to the prosecutors. The investment incurred a loss in the excess of NT$20 million for the firm.   Minister of Finance Chang Sheng-ford (張盛和) said that MOFA will hold thorough investigations on the conduct and discipline of government-invested investment firm personnel in two weeks in order to find the root of the problem.

Chang said Monday he has ordered government-invested securities investment firms to audit their internal control mechanisms and plug any loopholes they find.