News Analysis: SIU to Subpoena Jeffrey Koo Sr. in Ah-Bian’s Money-Laundering Case

News Analysis

SIU to Subpoena Jeffrey Koo Sr. in Ah-Bian’s Money-Laundering Case

Sources: Taipei newspapers Oct. 23, 2008

From the intelligence obtained through foreign legal assistance, the Special Investigation Unit (SIU) of the Prosecutor-General’s Office learned that Jeffrey Koo Sr.’s two sons, Geffrey Koo Jr. and Angelo Koo, had wired approximately NT$ 40 million in several increments into overseas bank accounts of Tsai Ming-che and Guo Shu-jen.

The SIU concluded that the Koo brothers had not wired the money as a wedding gift for Chen Chih-chung as NT$ 40 million could not have been considered a mere gift. Moreover, the SIU determined that there was a large time gap between the wire transfers and Chen Chih-chung’s wedding. The SIU will look into whether the Koo family had wired the money as bribes to curry favor from the former First Family during their bid to seize the controlling interests of China Development Financial Holding Co. or when Chinatrust Financial Holding Co. purchased shares in Mega Holdings.

Jeffrey Koo Sr. returned to Taiwan on October 20. It is reported that the SIU will subpoena Jeffrey Koo Sr., chairman of Chinatrust Financial Holding Co., as witness this Friday to testify in the case. The last time, he was subpoenaed by the Taipei District Prosecutors’ Office was during its investigation of Chinatrust Financial Holding Co.’s purchase of shares in Mega Holdings during the second-phase financial reform.

In 2004, the Koo family competed with Diana Chen, then chairman of China Development Financial Holding Co., for the controlling interests of China Development Financial Holding Co. The Koo family succeeded in taking over China Development.

In June of 2007, the Koo family prevailed over government representatives in the board election of China Development Financial Holding Co. The Koo family gained eight seats on the board of directors, two seats on the supervisory board and two seats reserved for independents, thus securing 2/3 of the seats on the board of directors.

In the case of Chinatrust Financial Holding Co.’s purchase of shares in Mega Holdings, the Financial Supervisory Commission allowed Chinatrust Financial Holding Co. to purchase a 10% stake in Mega Holidings in February 2006. In June 2006, Chinatrust Financial Holding Co. gained over half of the seats on the board of directors and the supervisory board during the shareholders’ meeting of Mega Holdings.

Jeffrey Koo Jr. is now a fugitive of the law for his involvement in criminal conduct when Chinatrust Financial Holding Co. purchased shares of the Mega Financial Holdings in the second-phase financial reform. Angelo Koo, general manager of China Development Financial Holding Co., is also traveling abroad. The SIU has issued entry/exit alerts on the Koo brothers to the National Immigration Agency. When he returns, it is expected that the prosecutors will require him to appear before the SIU to testify in the case.

Attachment : none