Ruling Handed Down in Red Fire New Trial|紅火案纏訟多年 辜仲諒更一審判3年半

Previously, Chinatrust Banking Corporation Charity Foundation Chairperson Jeffrey Koo was found guilty of financial irregularities and sentenced to 9 years and 8 months. He appealed. Recently, the first ruling of the new trial was announced: Koo was found guilty of violating the Financial Holding Company Act and the sentence was amended to three years and six months.


Previously, Chinatrust Banking Corporation (CTBC) Charity Foundation Chairperson Jeffrey Koo was found guilty of financial irregularities in the Red Fire Development Ltd. case. On Sept. 12, the Taiwan High Court announced the first ruling after a new trial was ordered. It said Koo violated the Financial Holding Company Act and handed down a sentence of three years and six months.

The judges considered that the reduced sentence provisions of the Criminal Speedy Trial Act are applicable to the defendant Jeffrey Koo. Moreover, he confessed during the investigation and returned all the monetary gains. The reduced sentence provisions were therefore applicable, and the defendant Jeffrey Koo was given a sentence of three years and six months.

The Red Fire Development Ltd. case occurred in 2004. At that time, CTBC Financial Holding was seeking to acquire a stake in Mega Financial Holding. Koo and numerous CTBC Financial Holding executives were accused of selling structured debt to Red Fire Development Ltd. and using these transactions to illegally profit. As a result, CTBC Financial Holding suffered hundreds of millions in losses. It took eight years before there was a ruling. Koo was sentenced to nine years and eight months in the second ruling for violations of the Securities and Exchange Act and the Banking Act. He appealed the ruling, and the Supreme Court repealed the ruling on the grounds that prosecutors did not prove Koo and others obtained personal gains. It sent the case back to the Taiwan High Court and ordered a new trial. The first ruling of the new trial was announced on Sept. 12. Koo was found guilty of violating the Financial Holding Company Act. He also confessed during the investigation, and returned all monetary gains. The court therefore determined the provisions of the Criminal Speedy Trial Act were applicable and reduced his sentence. As for other defendants in the same case, former CTBC Financial Holding executives Zhang Ming-tian and Lin Xiang-xi were sentenced to four years and two years, respectively. Former company legal adviser Deng Yan-dun was found innocent. Koo can still appeal the ruling. However, this is not the only legal case Koo is involved in at present. He is also a defendant in cases involving embezzlement and stock speculation. These cases are currently still in trial.