Investigators on Friday raided the headquarters of TransAsia Airways and the home of company chairman Vincent Lin (林明昇) as part of an ongoing investigation into suspected insider trading in the company’s shares.
Lin and 11 others were taken in for questioning.
According to Taiwan Stock Exchange Chairman Shih Jun-ji (施俊吉), senior employees at TransAsia sold their shares in the company on Nov. 21, as rumors the airline would suspend operations started to circulate.
TransAsia initially denied the rumors, but an announcement later in the day indicated that all flights on Nov. 22 were canceled.
After a special board meeting on Nov. 22, TransAsia announced that the company was to be dissolved due to deteriorating finances and that all flights were suspended with immediate effect.
Source: Focus Taiwan News Channel