In an accusation said in 2015, the family ran Taiwan’s second largest bank – Fubon Financial Holding Co. – has invested in Convoy a value of 1.57 billion HKD and Mr. Cho has transferred that investment money into the pockets of his network co-workers. Members of the Tsai family declined to comment.
According to the lawsuit, the Tsai family wanted to add the former CEO of Citigroup Inc., Sanford Weill, as a co-investor, but Cho denied this idea. Instead, Mr. Cho found independent investors to buy new shares worth 1.4 billion HKD of Convoy Company. These new investors turned out to be a close relative of Mr. Cho, who owns a company specializing in public relations (PR) for Town Health and a number of other companies. .
After that, Mr. Cho directly instructed Convoy to lend more than HK $ 1 billion to the companies and his affiliates, including the use of collateral, and under an alleged otherwise, the action was based on “non-commercial, unreasonable and / or materially detrimental terms” to Convoy.