Taisun Group in Scandal Again! CEO Jailed Over Toxic Oil Case, Executives Implicated in 'Selling FamilyMart' Insider Trading

Taisun Group has recently been embroiled in the Zhonglian carcinogenic oil scandal, resulting in the detention of former CEO Shen Yi-chun and current CEO Tsai Kuo-liang by court order. Additionally, prosecutors have launched an investigation into suspected insider trading related to the company's decision in late 2022 to divest shares in FamilyMart Convenience Store Co., allegedly conducted by insiders before the public announcement of the transaction.

On December 2, 2022, Taisun issued a material announcement stating that its board had resolved to dispose of up to 43,500 shares of FamilyMart to enhance long-term investment value, improve shareholder equity, and strengthen financial structure.

On December 5, 2022, Taisun sold approximately 19% of its stake in FamilyMart Convenience Store through a large block transaction, totaling around NT$8 billion, generating a profit of approximately NT$5.4 billion. The 43,300 shares were acquired by Wanhao Development, a major shareholder of Cathay Financial Holdings.

On January 2023, the Taiwan Stock Exchange announced that the transaction violated internal control and material information disclosure regulations, posing potential risks to shareholder rights and securities prices, and imposed a fine of NT$2 million.

Moreover, prosecutors received intelligence indicating that related parties may have traded shares based on non-public information prior to the official announcement,涉嫌 violating Article 157 of the Securities and Exchange Act regarding insider trading.

On the 30th, Taipei District Prosecutors’ Office, directing the Taipei Branch of the Ministry of Justice Investigation Bureau, executed search warrants at 17 locations—including residences of former Chairman Mr. Chan, current Chairman Mr. Liu, and related investment firms. A total of 15 individuals—including 11 defendants and 4 witnesses—were summoned for questioning.

More exclusive reports from Feng Media: - Zhonglian toxic oil scandal: Evidence destruction and collusion suspected; former and current Taisun CEOs Shen Yi-chun and Tsai Kuo-liang detained without visitation - Is Taisun’s major shareholder a 'China-wanted fugitive'? Financial commentator Hsieh Chin-ho exposes Chu Kuo-jung’s dark past, condemning the toxic oil scandal: 'Cheating suppliers must be arrested' - Chairpersons of Taisun, Fushou, and Fumao Oil apologize publicly; one company announces it will no longer sell 'same-period oil products' even if they pass inspection