Evergreen Marine Corporation (EMC) said it is cooperating with authorities in a “search and investigation at the company” that has seen Evergreen Group president and son of the group’s founder Chang Kuo-hua questioned and released on US$3.75M bail.
Local media reports say the Taipei District Prosecutors Office instructed the Ministry of Justice Investigation Bureau to search 10 locations, including Evergreen Marine offices, and summoned Evergreen Group heirs and sons of the business’ founder Chang Yung-fa, Chang Kuo-hua and his brother Chang Kuo-cheng along with former senior Evergreen executive Ko Li-ching and six others for questioning.
Search warrants approved by the Taipei District Court led to searches and questioning of suspects by Taipei District Prosecutors Office as part of an investigation stemming from an Evergreen Marine shareholder.
Shareholder Lin Wen-peng filed a complaint in 2024 alleging insider trading practices, and a Taiwan Stock Exchange review of the transactions identified suspected breaches and referred the matter to prosecutors. The analysis reportedly indicated that Chang Kuo-hua and others traded Evergreen Marine shares during a statutory blackout period before the disclosure of material information linked to the sale of EVA Airways by Evergreen Group.
Chang Kuo-hua denied the allegations, saying that, while he bought shares in a block trade after the market closed on 30 June 2024, he reported the transaction to the Taiwan Stock Exchange, has not sold any of the shares since and has not profited from the transaction.
Chang Kuo-hua reportedly bought some of the block of more than 90M shares in his wife’s and his son’s names. All three individuals have been released on bail and barred from international travel or change of residence during the investigation, and Chang Kuo-hua has reportedly been required to wear an electronic monitoring device.
Chang Kuo-cheng was released on bail of US$312,500, and barred from travel or changing residence. Evergreen Marine director Tai Ching-chuan and manager Hsieh Shu-hui were released under similar restrictions and on lower bail amounts.
Evergreen Marine board director Ko Li-ching and two other individuals brought in for questioning were released without bail.
On 6 July, Taipei prosecutors and police raided the homes of Chang Kuo-hua, Chang Kuo-cheng, and Evergreen Marine board director Ko Li-ching as well as the offices of Evergreen Marine and Evergreen International Corp, among other locations.
Evergreen Marine Corporation acknowledged the investigation and searches in a filing on the Taiwan Stock Exchange that said the company is cooperating and provided an emailed statement to Riviera, saying its business operations have not been affected.
“The Investigation Bureau of the Taiwanese Ministry of Justice has conducted an investigation into the internal affairs of Evergreen Marine Corporation today (6th of July). The company has fully cooperated with the authorities during this investigation. Its operations remain unaffected and continue as normal and the incident has had no impact on the company’s financial situation or business dealings,” the group’s statement said.