"Unauthorized Redemption Cancellation" Lime Fund Victims Sue Daishin Securities

Victims of Lime Asset Management funds held a press conference on the 21st in front of the Seoul Southern District Prosecutors' Office in Yangcheon-gu, Seoul, urging the prosecution to conduct a swift investigation. The victims filed a complaint with the Seoul Southern District Prosecutors' Office against the head of Daishin Securities Banpo WM Center on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and fraudulent trading under the Capital Markets Act. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Yoo Byung-don] More than 60 investors who suffered losses after subscribing to Lime Asset Management funds sold by Daishin Securities have filed a complaint, claiming that their redemption requests were canceled due to Daishin Securities' computer manipulation.

Kim Bong-woo, a lawyer from Woori Law Firm representing the victims, held a press conference on the 2nd in front of the Seoul Southern District Prosecutors' Office and announced that they would file a complaint against Daishin Securities and former head Jang of Daishin Securities Banpo WM Center for violations of the Electronic Financial Transactions Act and the Personal Information Protection Act.

They claim that Daishin Securities had no intention of accepting investors' fund redemption requests from the beginning, yet took orders as if they would process the redemptions, and when the orders were actually placed, canceled the redemption orders without consent through computer manipulation.

According to Lawyer Kim, when allegations of Lime's fraudulent fund management surfaced in July last year, investors who had invested in Lime funds through Daishin Securities demanded redemptions, and former head Jang informed investors on October 2 to apply for redemption.

However, when investors applied for redemption, Daishin Securities allegedly accessed the trading system without authorization using investors' personal information and manipulated the system to cancel the redemption orders, according to their claims.

Lawyer Kim stated, "Daishin Securities conspired in designing the Lime fund, induced subscriptions through false product brochures, and then trapped victims trying to escape by means of computer manipulation," adding, "They executed a systematic fraud."

Former head Jang was indicted in custody on the 8th of last month on charges of falsely informing or misleading investors about important information such as the possibility of losses while selling Lime Asset Management funds worth approximately 200 billion KRW.

In response, Daishin Securities explained, "The seller (Daishin Securities) can request fund redemptions from the asset manager (Lime), but does not have the authority to cancel redemptions," and added, "The asset manager approved the redemption but later canceled it, which resulted in the redemption orders being canceled."