Pendrive creator Datuk Pua gets two-year jail sentence in Taiwan after alleged fraud

Ask any local around here if they can tell you who invented the USB flash drive, chances are they’ll mention that a Malaysian made it. However, Datuk Pua Khein-Seng, widely known around these ends as the ‘father of the pendrive’, might have to do some time behind bars according to reports from Taiwan.

It was alleged that the founder and CEO of Phison had told his staff to falsify accounting transactions from 2009 till 2014. Datuk Pua was then actually investigated by Taiwanese authorities in 2016 over the matter, but in August 2017 the public prosecutor’s office suspended the case, and fined Phison TWD110 million (~RM16.4 million) as they found he had no prior convictions on top of no illegal gain.

They later sent the case to the higher levels of the public prosecutor’s office, but unfortunately for Datuk Pua they found that the investigation was incomplete. Following another around of investigation, they then decided that he had violated the Securities and Exchange Act and have sentenced him to two years behind bars.

According to the new investigations, Datuk Pua had illegally transferred funds to his Hong Kong subsidiary, allowing him to use the funds and lowered the financial costs of his other companies. He also apparently told his staff to arrange these false transactions. Another allegation is that Phison had failed to disclose a number of transactions between them, Ostek Corporation and another three other companies.

In the meantime, Datuk Pua has stated that he has yet to receive the verdict, and as such doesn’t know exactly why he’s been meted out a jail sentence. Phison will also continue to operate as usual and won’t be affected by its CEO’s legal troubles.

[ SOURCE ]