Li Henglong, former chairman of Pacific Circulation Company.

(file photo)

[Reporter Wu Zhengfeng/Taipei Report] Pacific Construction had a financial crisis in 2002. In order to avoid affecting the group's Golden Rooster Pacific Sogo Department Store (SOGO), the founder Zhang Minqiang asked Li Henglong to be the chairman of SOGO's parent company Pacific Investment Corporation. Chairman Lin Huade and accountant Lai Yongji dealt with bailout matters, but they were unexpectedly taken over by the Far East Group in the end. Zhang Minqiang filed a breach of trust lawsuit against Li Henglong and others. The Taipei District Court acquitted Li and Lai on the 24th.

Prosecutors may appeal.

The North Court stated that according to the evidence filed by the prosecutor, it could not prove that Li Henglong had accepted the commission of Zhang Minqiang, so it did not constitute a crime of breach of trust; Lai Yongji's time limit for prosecution had expired and he should be sentenced to exemption from prosecution.

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In September 2002, Taishe had a financial crisis, and SOGO also went out of business due to Typhoon Nali. Zhang Minqiang, in order to avoid the impact on SOGO, registered SOGO’s parent company Tailiu Trust with Li Henglong, and Li served as the chairman of Tailiu. Lai Yongji dealt with bailout matters such as capital increase together. Unexpectedly, the Far East Group spent 4 billion yuan to dilute Li's shares and win the management right.

Zhang Minqiang questioned that Li Henglong, Lai Yongji, Lin Huade and others violated the entrustment, knowing that Taishe had signed a memorandum with Cai Chenyang (deceased), the founder of Humble House Group, and Chen Defu of Sunrider Group, intending to sell the SOGO shares he held to obtain a capital injection of 10 billion , but obstructed the transaction, involved in the crime of breach of trust.

The court found that Lin Huade had indeed violated Zhang Minqiang's entrustment, and was sentenced to 2 years in prison for the crime of breach of trust. He was sent to prison in 2010 and released on parole in 2011.

Li Henglong and Lai Yongji were also accused of falsifying the minutes of the extraordinary shareholders' meeting and the meeting of the board of directors, and they were transferred to the court together with the crime of breach of trust. However, they were later acquitted of the crime of forging a document. Check weight.

The Beijing Municipal People's Procuratorate found that Li and Lai had indeed committed the crime of breach of trust, and they prosecuted in 2019. After the trial by the Taipei District Court, Li was acquitted and Lai was exonerated on the 24th.

Appealable