Circuits Assembly Online Magazine - Five BenQ Execs Indicted on Embezzlement, Money Laundering and Forgery

News

TAOYUAN, TAIWAN – Five BenQ executives have been indicted on embezzlement, money laundering and forgery charges, causing shares in the Taiwan company to fall sharply today.

A spokesman for the Taoyuan District Prosecutor's Office said BenQ chairman KY Lee, president Sheaffer Lee, and senior vice president Eric Yu were among those charged and face minimum jail terms of seven years. The three allegedly violated securities laws in the sale of $24 million of shares designated for employee stock options in 2003.

Financial officer Alex Liou and accounting manager DW Liu were also indicted. All five are also suspected of using employees as a front to sell shares shortly before BenQ disclosed heavy losses in March 2006 from its takeover of the mobile phone operations of Siemens AG.

BenQ calls the indictment "unacceptable,” but has hope for a fair trial.

The company today also announced $10 billion in revenue for April, down 8% from the same month last year. In the first quarter of 2007, BenQ’s 37- and 42-inch LCD TVs ranked number one, and overall LCD TV products ranked third in the Taiwan market.