The Channel logo
The Channel uses cookies. Find out more.

News

By | Paul Kunert 12th May 2014 10:25

Acer pair charged with insider trading for '$72k pre-results stock dump'

Cashed in right before Q3 slump, alleges rap sheet

Sponsored: Creating the Storage Advantage

Two senior Acer staffers have been charged with insider trading – after allegedly offloading shares worth $72,300 just before the PC giant announced fresh financial losses.

Former company mouthpiece Henry Wang and investor relations division senior manager Jiong Yuan Chen were charged in Taiwan late last week along with five others. They were among a group of ten quizzed by cops in March in an alleged insider-dealing probe.

An Acer spokesman told The Channel today: "Acer respects the judicial investigation procedures and is not in a position to comment on the individual actions of Henry Wang and Jiong Yuan Chen."

Taiwanese prosecutors told reporters the pair allegedly made $72,300 (£42,800) when they cashed in shares just before the Taiwan-based PC maker reported losses of NT$13.13bn ($442.2m, £258m) in the third quarter of 2013. The losses were due to a series of one-off charges.

Following the public filing of the quarterly financials, Acer's market cap fell 6.8 per cent.

Charges against three other people were dropped on insufficient evidence grounds; these individuals did not work for Acer.

Last week Acer reported Q1 sales of NT$76.72 (£1.5bn), down 16 per cent year-on-year, with a profit of NT$1m (£19,600). Chairman Stan Shih returned to the business last autumn with a turnaround in mind.

The business is now back in the black and Shih is due to step down next month, but is one of the nominees to be re-elected onto the board. ®

Sponsored: Creating the Storage Advantage

comment icon Read 2 comments on this article alert Send corrections

Opinion

Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Chris Mellor

All that is storage does not beget gold

Features

Funnel of cash. Credit: via SXC – http://www.sxc.hu/profile/Leonardini
You see a diversity tickbox nightmare, I see human beings
hands waving dollar bills in the air
AWS and Salesforce match up to Ellison's hardware