I wish I could post a Hindi satirical comedy by Jaspal Bhatti on IPOs.... would explain much better
I wish I could post a Hindi satirical comedy by Jaspal Bhatti on IPOs.... would explain much better
Related news:
https://www.bloomberg.com/news/artic...tives-arrested
One more follow up in Bloomberg.
https://www.bloomberg.com/news/artic...ong-kong-courtThe suit alleges that a HK$1.57 billion ($200 million) investment by the Tsai family for a stake in Convoy was diverted by company insiders and their associates for personal benefit, according to the plaintiffs. The filing said several Enigma Network companies and their executives were also involved. The Tsai family controls Fubon Financial Holding Co., Taiwan’s second-largest listed bank by assets.
The alleged misuse of funds was overseen by Cho Kwai-chee, a Convoy director and deputy chairman of Town Health International Medical Group Ltd., another Enigma Network member, the suit said. Calls and emails to Cho and Town Health went unanswered.
I'm very confused regarding what happened. Normally buying shares is very straight forward. You trade shares for cash.
I'm guessing that the Tsui family wanted to indirectly obtain the stake in Convoy and therefore bought into companies that own shares of convey, but didn't realise that the companies they bought didn't actually own the shares, or something to that effect.
Or Tsui paid money to purchase the shares held by the directors and the directors just pocketed the cash and didn't transfer the shares?
Like how do they divert cash for shares?
I see - I read some news and it says that this Tsai investment was actually made in 2015 by Convoy issuing new shares to Tsai. The senior management of Convoy then lent out money to companies and those companies went bankrupt and didn't repay the loans and the cash was pocketed by those executives.