Malaysian pen drive pioneer faces two-year jail in Taiwan, to appeal

 

Malaysian Pua Khein-Seng, a pioneer of pen drive technology, is facing two years imprisonment in Taiwan for allegedly misrepresenting the financial reports of Phison Electronics Corp to regulatory authorities.

Pua is the chairperson of Phison Electronics Corp which produces controllers for NAND flash memory chips used in flash drives and solid-state drives.

The Taiwan Hsinchu District Court on Oct 29 sentenced Pua to two years imprisonment for violating the Securities and Exchange Act.

Phison, responding to the judgment in a material announcement, said Pua will appeal the decision of the case which first surfaced in August 2016.

"Pua presents his regret for the judgment and will discuss with attorneys to determine corresponding matters and appeal this case to the court of the second instance," it said in the announcement.

Phison, in a separate statement yesterday, said Pua had made "special business arrangements" with the company as he controlled multiple companies and was trying to respond to severe competition and the 2008 financial crisis.

It added that the arrangement was for Phison's long-term development, and he had no motive to damage or cheat Phison.

It stressed that ultimately, Phison did not suffer any damage.

"In 2014, since Pua had first knowledge that he may have violated the law, he voluntarily appeared in governmental authority and actively cooperated to the investigation.

"In mid-2016, Pua further voluntarily appeared in governmental authority the second time to answer follow-up investigations and promised to produce required evidence," it said.

Phison maintained it had redone its financial report and no abnormality was found.

"After the beginning of Phison’s financial case, financial supervisory authority instructed Phison to re-prepare financial reports, and the result was that Phison’s shareholders’ equity was not changed.

"Financial supervisory authority further instructed Taipei Exchange to implement due diligence to Phison re-prepared financial reports, and the conclusion was still no materially abnormal result was found," it said.

Phison said its board is backing Pua and wants him to continue in his role.

"Phison’s board members have had discussions to the court judgment, and they all support and ask Pua to continue to implement his duties to lead the company.

"Therefore, for the company’s overall interest, Mr Pua will appeal the judgment to the court of the second instance and will continue settlement discussions with Securities and Futures Investors Protection Center," it said. - Mkini