Taiwanese Media Mogul Indicted

TAIPEI, Taiwan – The head of Taiwan’s largest media group has been indicted for violating securities law and embezzling funds, an official said Monday.

According to the Taipei Prosecutors’ Office, Gary Wang, chairman of the Eastern Multimedia Group, made illegal profits from the sale of a majority stake in a cable operator under the group to the U.S.-based private equity firm Carlyle Group.

Authorities have demanded a 28-year jail term for him, said Lin Ching-tsun, a spokesman for the prosecutors’ office.

Lin said Wang bought shares in the cable operator before the sale to Carlyle was announced and later profited from selling them at a higher price to the equity fund.

The April 2006 sale was valued at $1.3 billion. Lin did not say how much prosecutors are alleging Wang profited from the deal.

Wang was also indicted for embezzling $1.14 billion from a financial firm and other companies under the Rebar Group headed by his father, Wang You-theng, Lin said.