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Head of defense firm sentenced in fraud case

Chung-Hsin Electric and Machinery Manufacturing Corp (CHEM, 中興電工) chairman Chiang Yi-fu (江義福) was yesterday sentenced to six years in prison for fraud in connection to procurement contracts for the domestically developed CM-32 Clouded Leopard armored vehicle.
The Taichung District Court ruled that Chiang and other executives at the firm had breached the Securities and Exchange Act (證券交易法) and that the firm had made about NT$2.1 billion (US$75.2 million) in illicit profit from the procurement deal.
CHEM general manager Kuo Hui-chuan (郭慧娟) was sentenced to a suspended jail term of two years, while deputy general manager Lee Liang-chang (李良章) was sentenced to four ....

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