BenQ Chairman Defends Executive Detained In Raid

SHANGHAI — After a police raid earlier this week and allegations of insider trading, BenQ Corp.'s chairman took the extraordinary step of publicly defending the company in an open letter to the press.

Police raided the offices of Taiwan's BenQ on Wednesday, leading to the arrest of two senior executives in relation to irregularities over bonuses paid to overseas employees. BenQ Senior Vice President Eric KY Yu was held in custody for questioning by police investigators and prosecutors.

In his letter, BenQ Chairman KY Lee denied that any insider trading occurred, and shot back at "negative" reports about Yu and his alleged involvement, calling them "baseless and untrue."

"Everyone that has worked with Eric both inside and outside the company can attest to his integrity, honesty and ethical character. Eric has selflessly served BenQ for many years and I believe that his name will be cleared as soon as possible," Lee said.

He reiterated that BenQ was cooperating with the investigation, and believed it would be vindicated of any wrongdoing.

BenQ is one of Taiwan's largest name-brand companies.