Taipei: Chang Kuo-hua, a board director of the Taiwanese shipping giant Evergreen Marine Corp., was released on NT$120 million (US$3.75 million) bail early Tuesday. This development follows his questioning by prosecutors over allegations of insider trading involving the company's shares.
According to Focus Taiwan, the Taipei District Prosecutors Office has imposed several restrictions on Chang. He has been barred from leaving Taiwan or traveling by sea, is not allowed to change his residence, and must wear an electronic monitoring device. The insider trading allegations date back to April 2024, when lawyer Lin Wen-peng accused Chang, his family, and Evergreen Group executives of illicitly trading Evergreen Marine shares in 2023.
The accusations stem from Lin's complaint, filed as one of Evergreen Marine's shareholders, which accused Chang and his associates of purchasing over 90 million shares on June 30, 2023. This purchase allegedly occurred before Evergreen Marine announced the sale of its stake in EVA Airways, a major subsidiary, in August that year. Lin asserts that this action violated the Securities and Exchange Act by trading on non-public material information.
In response to these allegations, Chang has denied engaging in insider trading. He claims that his purchase of Evergreen Marine shares was a block trade conducted after market closure on June 30, 2024, and insists that he has not sold any of the shares since. Chang stressed that the transaction was legally reported to the Taiwan Stock Exchange.
On Monday, authorities conducted raids at the homes of Chang Kuo-hua, his brother Chang Kuo-cheng, and Evergreen Marine board director Ko Li-ching, as well as at the offices of Evergreen Marine and Evergreen International Corp. Following these raids, nine individuals were summoned for questioning.
The legal proceedings extended to Chang's family, with his wife Yang Mei-chen and son Chang Sheng-en each released on NT$5 million bail on Tuesday. Similar restrictions were placed on them, preventing their departure from the country and requiring residence stability. Chang Kuo-cheng, the third son of Evergreen Group's late founder Chang Yung-fa, was released on NT$10 million bail under similar conditions. Meanwhile, Evergreen Marine director Tai Ching-chuan and manager Hsieh Shu-hui were released on NT$3 million and NT$2 million bail, respectively. Ko and two others were released without bail requirements.
Evergreen Marine, the flagship company of the Evergreen Group, remains under scrutiny as the investigation unfolds. The Evergreen Group, a prominent transportation conglomerate in Taiwan, faces significant challenges as these legal proceedings continue to develop.