Taiwan leader Chen Shui-bian's popularity was hit by another heavy blow 
as his son-in-law was said to be involved in an insider trading. 
 
 
 | ![Wedding picture of Chen Shui-bian's daughter and son-in-law Chao Chien-ming. [File]](xin_3405031517161393041417.jpg) Wedding picture 
 of Chen Shui-bian's daughter and son-in-law Chao Chien-ming. [File 
 Photo]
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The Chinese-language China Times 
newspaper said on Monday the Taipei district prosecutor's office began 
investigations last week into the case filed by Chiu Yi, a legislator of 
the Nationalist Party. 
The scandal happened at a time when Chen's popularity has already slumped to 
new lows due to a string of corruption scandals. 
Chiu said that Chen's son-in-law, Chao Chien-ming, made profits of up to 
T$400 million ($12.65 million) by using dummy accounts to buy 20 million shares 
of real estate developer Taiwan Development Corp. <2841.TW> at T$2 each. 
Chen's office said in a statement issued on behalf of his son-in-law that the 
accusations were "totally made up out of thin air and have misled the public". 
The office quoted Chao as saying he had no knowledge of his mother's 
financial investments and did not get involved in her decisions. 
A ruling party law-maker, Huang Wei-che, defended Chao's mother, saying she 
had bought the shares from Chang Hwa Bank <2801.TW> last year after 
receiving professional advise. 
Taiwan Development shares fell by the daily seven-percent limit to close at 
T$16.80 on Monday. 
A bank spokesman confirmed the purchase but denied any wrongdoing. He would 
not say why the bank had sold the Taiwan Development shares to her. The shares 
have increased about eight-fold in value since last year. 
Chen Shui-bian's office described as fabrication another accusation by 
legislator Chiu that Chao bought a luxury apartment at a big discount last year. 
Chao, a medical doctor married to Chen's daughter, would sue Chiu for 
defamation, the office said without further comment. 
The prosecutor's office, reached by telephone, had no immediate comment. 
Chen's popularity has been dogged in recent months by scandals involving his 
men. 
Taiwan's top financial regulator, Kong Jaw-sheng, resigned on Monday, days 
after he was questioned by prosecutors in a corruption scandal when he was head 
of the island's sugar refiner. 
And last month, an opposition deputy said Chen's wife Wu 
Shu-chen has accepted department store vouchers worth millions of Taiwan 
dollars from a friend. Chen has denied the allegations.