Three executives of Taiwanese electronics company BenQ were arrested under allegations of insider stock trading involving the timing of stock sales and announcements of losses incurred by the now-defunct BenQ Mobile. Two of the executives were released on on bails of NT$5 million and NT$2 million (about $150,000 and $60,000 U.S. dollars) respectively, while the third, BenQ’s chief financial officer Eric Yu, was refused bail and remained in custody early Thursday.
The allegations stem from allegations that BenQ executives sold shares of the company stock just prior to announcing significant losses incurred by BenQ Mobile, the mobile phone business BenQ acquired from Siemens AG in 2005. BenQ Mobile’s share price plummeted after the announcement.
