http://www.pcworld.com/article/id,12986 ... ticle.html
In an open letter to the media and customers, BenQ Corp. Chairman K.Y. Lee Thursday defended his company over allegations of insider stock trading and said its chief financial officer (CFO) is innocent.
The letter comes just two days after officers from the Taoyuan District Prosecutor's Office raided BenQ offices and detained three executives over alleged insider stock trading and irregularities in the payment of stock options to overseas employees.
Two of the executives have been released on bail, but the third, CFO Eric Yu, 51, remains in custody, a BenQ representative confirmed.
"Contrary to media speculation that BenQ might be involved in insider trading or irregularities involved in the selling/buying of stock, this speculation is false," Lee wrote in the letter. "Negative media stories about Mr. Eric Yu are baseless and untrue...Eric has selflessly served BenQ for many years and I believe that his name will be cleared as soon as possible."
The Taoyuan District Prosecutor's Office alleges that some company executives sold off shares of stock ahead of announcing a loss in the first quarter of last year, caused by troubles related to its takeover of BenQ Mobile GmbH & Co. OHG, the German mobile phone division it obtained from Siemens AG in 2005, as well as stock options problems.
Lee said the allegations have affected the company's long standing reputation and raised concerns among customers, employees and the public, therefore he wrote the letter to clarify the allegations and media speculation.
DigiTimes has speculated that there will be a management change very soon.
With BenQ president for global sales Jerry Wang also being summoned by prosecutors for questioning as a witness and BenQ chairman KY Lee likely to be questioned as well, the allegation has caused severe damage to the company's reputation and could trigger a top management shakeup at the company and an exodus of its employees. It could also leave the company exposed for a malicious takeover.