Warrant Issued in Taiwan for OnePlus Founder Pete Lau; Indictment Against Two Others
Two executives under indictment, OnePlus founder Pete Lau wanted, charged with running an illegal R&D operation in Taiwan, according to Shilin District Prosecutors Office. The smartphone company is accused of hiring engineers from Taiwan illegally with funds sent to advance the project.
Details of the Allegation
Prosecutors alleged Lau conspired with two persons surnamed Lin and Cheng to set up an R&D center in Taiwan contrary to the provisions of the Cross-Strait Act, as the operation was veiled by an elaborate web of corporate actions.
- A Hong Kong company was set up under the OnePlus name in March 2014.
- In March 2015, a Taiwan branch was registered with Cheng as the legal representative.
- Names of these companies were changed from OnePlus to Sonar in May 2019.
Funneling of Funds and R&D Activities
The indictment states that more than NT$2.3 billion (about US$72.93 million) was funneled to the Taiwan branch from August 2015 up until January 2021. Funds transferred through the Hong Kong trading company were disguised to masquerade as revenue from commissioned R&D.
Reportedly, this money was used to recruit more than 70 Taiwanese engineers and for their salaries and equipment. Witnesses indicated that, software developed by the Taiwan branch was used purely for OnePlus and Oppo phones while all financial and attendance reports were sent regularly to the headquarters in Shenzhen.
Testimony by a Relevant Executive
During interrogation, Lin stated that Lau appointed him R&D Director and he was responsible for managing the team. He stated that Lau made all operational decisions and that the Taiwan branch never developed any client on its own.
Legal Aftermath
According to prosecutors, after concluding their investigation, Cheng and Lin contravened the Cross-Strait Act, and they were accordingly charged. With regards to the same subject, Lau, the founder of OnePlus, was placed on the wanted list.
