Former Tenyu Financial Chairman Searched and Questioned in Suspected Securities Exchange Act Violation

(CNA, Reporter Lin Chang-shun, Taipei, 18th) Prosecutors and investigators received a tip that the former chairman, surnamed Wen, of Tenyu Financial Technology Service Co., was involved in violations of the Securities Exchange Act after acquiring management control of Formosa Aurora Co. (now renamed Fuyuronggong Co.) in 2018. The Taipei District Prosecutors Office today directed the Bureau of Investigation to conduct searches at six locations and summoned Wen and three other defendants for questioning. Fuyuronggong issued a material information announcement this afternoon, stating that prosecutors and investigators conducted an investigation and search at the company today. The company cooperated with the investigation in accordance with the law and provided relevant information for clarification. It stated that the company's operations are all normal and there is no significant impact on its finances or business. According to the investigation, after gaining control of Formosa Aurora in 2018, Wen allegedly violated the company's procedures for acquiring or disposing of assets in 2020. He spent over NT$13 million to purchase a cross-border trade supply chain finance system from Tenyu Wuhan and used US$2 million (approximately NT$63 million) to buy a fund from the Tenyu Group. Investigators also found that between 2018 and 2022, Wen allegedly placed more than 20 employees of Tenyu Financial Technology Service Co. on the payroll of Formosa Aurora, having the latter pay their salaries and labor/health insurance, amounting to over NT$10 million. Today, the Taipei District Prosecutors Office directed the New Taipei City Field Office of the Bureau of Investigation to execute search warrants issued by the court, searching the residences of three defendants surnamed Wen, Chen, and Chang, as well as the offices of Fuyuronggong Co. and Tenyu Financial Technology Service Co., for a total of six locations. Four defendants were summoned for questioning. The entire case is being investigated under suspicion of non-arm's length transactions and special breach of trust under the Securities Exchange Act. (Editor: Lee Hsi-chang) 1150518