Pendrive inventor faces two years jail in Taiwan
Renowned pendrive inventor, Datuk Pua Khein Seng, is looking at a two-year jail sentence in Taiwan, due to alleged falsifying of accounting transactions between 2009 and 2014. He has apparently instructed his staff to make false transactions and transferred funds from Phison to his Hong Kong subsidiary.
Pendrive inventor to go to prison in Taiwan for accounting fraud?
The pendrive inventor and Phison’s founder and current CEO was investigated back in 2016 for instructing his staff to falsify the company’s financial reports. The case was apparently resolved back in August 2017, when the public prosecutor’s office decided to suspend the prosecution and fine Phison for 110 million TWD (~RM16.4 million), due to no prior convictions and that there was no illegal gains.
However the case was reopened by the High Prosecutors Office, as they deemed that there was insufficient evidence. Investigations concluded late last month, with the verdict that Datuk Pua Khein Seng violated Article 171 of the Securities and Exchange Act.
He was apparently found to have used company funds freely and reduced the financial costs of the other companies he set up by siphoning funds into his Hong Kong subsidiary. Phison has also apparently failed to disclose several large transactions between them and Ostek Corporation, as well as three other corporations that had substantial influence over Phison.
Phison’s founder and CEO released a statement saying that he has yet to receive the verdict and does not know the reason behind his sentence. He also went on to say that he will cooperate with the investigations, and that the company will continue to operate as usual, unaffected by the verdict.
Pokdepinion: I hope that Phison’s activity isn’t affected, as they are slated to power PCIe 5.0 SSDs arriving early next year.