Sandi Group Founder Indicted for Stock Manipulation; Kaohsiung Prosecutors File Charges Against 9 People
Chung Chia-tsun, founder of Sandi Group, has been indicted for orchestrating a stock manipulation scheme for North Point International to avoid bank margin calls, resulting in illicit gains of 36.98 million TWD.
📋 Article Processing Timeline
- 📰 Published: April 28, 2026 at 16:06
- 🔍 Collected: April 28, 2026 at 16:31 (25 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 18:26 (1h 55m after Collected)
The founder of Sandi Group, Chung Chia-tsun, was indicted by Kaohsiung prosecutors for instructing executives and conspiring with market intermediaries to manipulate stock prices, leading to illicit gains of approximately 36.98 million TWD. The move aimed to prevent shares of his subsidiary, North Point International, from being forcibly sold by banks due to margin calls.
Chung Chia-tsun and others from Sandi Group were already under investigation for solar energy scandals involving Kaiyang Power. During that process, prosecutors received intelligence regarding stock manipulation. Search warrants were executed between December last year and January this year. Sandi Group's Vice Chairman (Lee) and Chung's financial secretary (Tseng) were detained on December 30th. Following a full investigation, prosecutors have now officially filed additional charges against Chung and eight others.
Investigation revealed that former Taitung County Magistrate Wu Chun-li and others held large amounts of North Point stock. In April last year, fearing market instability due to Chung's legal entanglements, Wu sought Chung's help to sell the shares. To facilitate the sale without crashing the price—and thus avoiding a 'margin call' on shares pledged as collateral to multiple banks by Chung personally and via Kaohsiung Transport—Chung ordered Lee and Tseng to manipulate the market through coordinated trading.
Chung instructed Vice Chairman Lee to negotiate with a market intermediary (Lu) and a securities executive (Lei). They agreed on a 5% kickback on the trading price and a 1 TWD per share brokerage fee. From July 25 to September 10 last year, the buyers used corporate accounts to absorb the dumped North Point shares while creating the illusion of active trading through continuous wash sales.
Prosecutors concluded that the nine defendants misled investors through illicit means, disrupted market order, and pocketed over 36.98 million TWD in rebates and fees. They have been charged under the Securities and Exchange Act for wash trading, coordinated orders, and price rigging.
Chung Chia-tsun and others from Sandi Group were already under investigation for solar energy scandals involving Kaiyang Power. During that process, prosecutors received intelligence regarding stock manipulation. Search warrants were executed between December last year and January this year. Sandi Group's Vice Chairman (Lee) and Chung's financial secretary (Tseng) were detained on December 30th. Following a full investigation, prosecutors have now officially filed additional charges against Chung and eight others.
Investigation revealed that former Taitung County Magistrate Wu Chun-li and others held large amounts of North Point stock. In April last year, fearing market instability due to Chung's legal entanglements, Wu sought Chung's help to sell the shares. To facilitate the sale without crashing the price—and thus avoiding a 'margin call' on shares pledged as collateral to multiple banks by Chung personally and via Kaohsiung Transport—Chung ordered Lee and Tseng to manipulate the market through coordinated trading.
Chung instructed Vice Chairman Lee to negotiate with a market intermediary (Lu) and a securities executive (Lei). They agreed on a 5% kickback on the trading price and a 1 TWD per share brokerage fee. From July 25 to September 10 last year, the buyers used corporate accounts to absorb the dumped North Point shares while creating the illusion of active trading through continuous wash sales.
Prosecutors concluded that the nine defendants misled investors through illicit means, disrupted market order, and pocketed over 36.98 million TWD in rebates and fees. They have been charged under the Securities and Exchange Act for wash trading, coordinated orders, and price rigging.