Taiwan's regulator calls for criminal investigation of Glaucus
Prosecutors in Taipei asked to look into short seller's claims foam-rubber maker cooks books
Taiwan's financial regulator has asked for an investigation of short seller Glaucus Research Group California for allegedly spreading false information about Asia Plastic Recycling Holding and for share manipulation.
The Financial Supervisory Commission (FSC) request was received on Monday, said Huang Mou-hsin, a spokesman for the Taipei District Prosecutors Office. Huang declined to elaborate on the specifics of the case.
Asia Plastic Recycling, a Taipei-listed foam-rubber maker, last month rejected as groundless Glaucus' allegations that its "financial numbers" were 90 per cent lower than stated. The stock has tumbled 27 per cent since Glaucus released its first report on April 24.
Prosecutors may investigate actions taken by Glaucus as well as the veracity of Asia Plastic Recycling's financial statements before bringing a case against either party, according to Lai Wenping, a criminal lawyer at law firm Lee and Li.
Access to documents, relating to the short seller or to the listed company's mainland-based records, could pose a challenge for Taiwanese authorities, Lai said.
Soren Aandahl, director of research at Glaucus, did not immediately respond to an e-mail requesting comment.