TAIWAN: It was all legal: first lady's stockbroker

Taiwanese media reports regarding Taiwan's first lady, Wu Shu-chen, result in allegations of stock market misdeeds

Taipei Times
Saturday, June 19, 2004

By Jimmy Chuang

Speaking to reporters as she arrived at the Taipei District Prosecutors' Office to testify about the investment activities of first lady Wu Shu-chen, stockbroker Lai Mei-yu said that Wu had never taken advantage of her position as first lady to profit from the stock market.

"She made money, but she also lost money. Media coverage made her out to have always won. But that isn't true," said Lai, who is a manager at EnTrust Securities.

Lai had been summoned by the prosecutors' office to testify regarding allegations that Wu had taken advantage of her husband's political position and her connections with important businesspeople to get insider information.

Lai told reporters that the allegations against the first lady were untrue. "She handled her trades just like everybody else. We did not give her any priority and she did not ask for any. There is nothing specific to say, really," Lai said.

Lai said that Wu always bought or sold her shares over the phone, never doing business in person.

The prosecutors' office gave no indication yesterday about whether it planned to summon the first lady or any other member of her family to testify.

The allegations against Wu surfaced when Next magazine reported in March that Wu had earned at least NT$1.3 million (US$39,400) on the stock market in four months last year -- and that she had never lost money in the stock market. The story said that Wu had opened trading accounts in her name as well as in the names of her son and daughter starting in June of last year. The magazine estimated that Wu had made trades totaling NT$17 billion within six months. In addition, the magazine reported that Wu did not accurately report her earnings.

Wu and her son Chen Chih-chung left yesterday for a five-day vacation to Japan. Wu said prior to leaving that she was very happy to be able to take the trip with her son. The trip marks the first time that Wu, as first lady, has gone abroad with her adult son.

Reports have said that Chen Chih-chung will travel to the US this summer for graduate study. Chen graduated from National Taiwan University's Department of Law and has completed his military service.

Date Posted: 6/19/2004