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Taiwan probes fund managers over government losses

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(Globalpost/GlobalPost)

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.

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http://www.globalpost.com/dispatch/news/afp/130404/taiwan-probes-fund-managers-over-government-losses