updated 01:38 pm EDT, Tue March 18, 2014
Unusual trade volume before CEO departure cited
Taiwanese officials are searching the Acer headquarters as well as homes of some employees in an ongoing insider trading investigation. Ten people, some of whom are Acer employees, were arrested in the probe, and are being questioned by the New Taipei District Prosecutor's Office in conjunction with the investigation, suspected of violating the Securities and Exchange Act of the country.
Earlier on Tuesday, rumors were circulating that some fund managers in the country had sold massive amounts of shares in Acer in the day before the resignation of Chief Executive J.T. Wang and President Jim Wong in November of 2013. The raids took place shortly after national media reported the rumors.
Acer itself has confirmed the search and arrests, saying that the manufacturer has "provided related information to authorities in cooperation with the investigation process on alleged insider stock trading by two employees' individual actions." It also noted that 14 satellite locations in Taiwan had been raided by the officials, with computer files seized for investigation and prosecution of the arrested individuals.