萬國法律事務所

The Taiwan High Court, after holding numerous hearings in the controversial Sogo Department Store takeover case, rendered a verdict on September 7, 2010 convicting Walter Lin, the former chairman of the Waterland Financial Holding Co., of breach of trust while acquitting Far Eastern Group Chairman Douglas Hsu of the same charge.

Mr. Walter Lin was sentenced to two years in prison for obstructing the transfer of shares issued by Sogo Department Store to their purchasers. Originally, Pacific Construction Co. signed a memorandum of understanding with two enterprises, where the latter was to invest a total of NT$ 1,000,000 in the Sogo Department Store by purchasing the shares it has issued. Despite knowing of the on-going investment plan, Mr. Walter Lin acted against instructions from Pacific Construction Co. and let the Far Eastern Group indirectly acquire shares in the Sogo Department Store by investing through the Pacific Distribution Investment Co.

Far Eastern Group Chairman Douglas Hsu was acquitted of the charges of breach of trust as the Court ruled that the investment by Far Eastern Group in the Pacific Distribution Investment Co. to indirectly acquire the right to manage the Sogo Department Store was a sound business practice and there was no indication of illegality.

The High Court verdict confirmed the earlier 2008 ruling rendered by Taipei District Court. No appeal against the verdict is possible.