The New Taipei District Office has announced the detainment of Henry Wang under an investigation into allegations of insider trading. The Wall Street Journal reports Wang as a “longtime spokesman” for Acer Inc., which has been hit repeatedly by the decrease in computer sales. Wang is being detained for two months.
In addition, Luo Fanglu, a friend of Wang’s who does not work for Acer, has also been detained, though it isn’t clear if it is for the same duration. Wang’s detainment was preceded with authorization by the New Taipei District Court today, it is being reported. Neither of the two individuals have issued a response.
The issue revolves around stock trades that were made before Acer’s financial report in November, which revealed losses over the quarter leading up to it, as well as the unexpected resignation of President Jim Wong and CEO J.T. Wang. Yesterday, a reported fourteen locations throughout Taiwan were searched as part of the investigation, among them being some employee homes.
Said Acer yesterday in a brief statement: “Acer has today provided related information to authorities in cooperation with the investigation process on alleged insider stock trading by two employees’ individual actions. Acer has always operated honestly as a law-abiding company, and requires its employees to follow laws and regulations. Today, authorities took from the Acer headquarters in Xizhi, Taiwan, the related documents and information. Acer is fully cooperative with the investigation procedures and hopes to clarify the matter as soon as possible.”
SOURCE: The Wall Street Journal