A Taiwanese official suspected of misappropriating labor funds for stock trading was detained
Taipei, November 27, an official from the Labor Fund Utilization Bureau, the labor affairs department of the radio authority, is suspected of accepting bribes and embezzling labor fund accounts to manipulate the stock price of a specific company, and has unidentified assets of more than $1.5 million USD (NTD, the same below), 27 The Taipei District Court ruled that detention is prohibited.
According to reports from the Central News Agency, United News Network, and China Times News, the Taipei District Prosecutor’s Office recently received a report saying that You Weiwen, the head of the “Labor Fund Utilization Bureau”’s internal investment group, continued to buy from labor fund-related accounts in July and August this year.
The stock of a specific company achieves the purpose of manipulating the price of the relevant stock. In addition, the prosecution found that from September 2012 to September this year, You Leiwen had successively deposited about 1.5 million USD in unidentified cash in his account, suspected of the crime of unidentified property sources.
The “Labor Fund Utilization Bureau” is an organization specifically responsible for Taiwan’s labor fund business. The labor fund is composed of labor retirement funds, labor insurance funds, and employment insurance funds.
According to Taiwan’s previous statistics on the investment income of labor funds, originally, funds with cumulative returns of more than 11.8 billion USD in the first eight months of this year had only 0.35 billion USD in return as of the end of September, and the cumulative return was only 0.05%. The monthly loss reached 11.52 billion USD, that is, almost lost the profit this year in one month. The “Labor Fund Utilization Bureau” found that You Yewen was involved in illegal activities through self-examination, and reported to the prosecutor for investigation.
On the 26th, the prosecution ordered the “ICAC” to conduct a three-way search and interviewed You and his wife to explain to the case. Considering that You Yewen might collude with confessions, the Taipei District Procuratorate launched a second wave of search operations on the afternoon of the 27th to interview other persons or witnesses involved in the case. At present, the whole case is under investigation in the direction of “crime of corruption,” “crime of unknown source of property,” “crime of manipulating stock price in violation of the Securities and Exchange Law”.
Because You Ningwen was in charge of the “Labor Fund Utilization Bureau” in July and August, the outside world worried that the loss of the Labor Fund in September was due to his embezzlement of public funds for stock trading.
In this regard, the person in charge of the labor affairs department of the Taiwan authorities stated that because labor fund investment is regulated, not individuals can control the decision; although the current short-term fund investment has repeated losses due to the Coronavirus pandemic, it has nothing to do with this case.