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Taiwan probes fund managers over government losses


Taiwanese prosecutors said Thursday they have launched an investigation into alleged wrongdoing by fund managers at two securities firms that caused massive losses to a government fund.

Prosecutors Wednesday raided the firms and questioned eight people on suspicion of insider trading, manipulation of stock prices and breach of trust from 2010-2012, they said in a statement.

The suspects actions allegedly resulted in more than Tw$1 billion ($34.5 million) in losses to the government while allowing them to make illegal profits of nearly Tw$100 million on the stock market.

Taiwan's financial regulators started reviewing 13 securities firms trusted with handling government investment funds after a similar case surfaced late last year.