Prosecutors Raid Hana Bank... Optimus Investigation Reignited (Comprehensive)

[Asia Economy Reporter Baek Kyunghwan] The prosecution investigating allegations of fraud in the operation of the 'Optimus Fund' conducted a search and seizure of Hana Bank, the custodian bank of the Optimus Fund, on the 24th. This appears to mark the restart of the Optimus investigation following the indictment of four executives, including CEO Kim Jaehyun of Optimus Asset Management, at the end of July.

The Economic Crime Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Jumincheol) sent prosecutors and investigators to the custodian sales department at the Hana Bank headquarters in Jung-gu, Seoul, on the morning of the same day to secure Optimus-related materials.

The prosecution sought to obtain materials to examine whether Hana Bank, as the custodian bank, purchased private bonds under the direction of Optimus despite the trust contracts of some funds listing the investment target assets as public institution accounts receivable.

It is known that Optimus instructed Hana Bank to purchase defective private bonds while registering the items as public institution accounts receivable with the Korea Securities Depository, thereby forging the fund statements. After analyzing the materials obtained from Hana Bank, the prosecution plans to verify whether bank officials properly handled their duties as the custodian company.

The prosecution has also secured testimonies from related parties indicating that former Optimus alternative investment head Jeong Youngje lobbied to receive funds from the Korea Communications Agency. The Korea Communications Agency invested 74.8 billion KRW in Optimus from June 2017 to March 2018 but withdrew the investment after discovering regulatory violations. It is reported that the prosecution has imposed a travel ban on former head Jeong and is tracking his whereabouts.

Meanwhile, the Financial Supervisory Service began an on-site inspection on June 19 after Optimus suspended fund redemptions and subsequently referred the case to the Seoul Central District Prosecutors' Office. Fund distributors such as NH Investment & Securities also filed complaints with the prosecution accusing Optimus executives of fraud.

Along with CEO Kim, second-largest shareholder Lee, in-house director and lawyer Yoon, and Yoo, general advisor of the new business division of the KOSDAQ-listed cosmetics company 'Skin & Skin,' were indicted on charges including violations of the Capital Markets and Financial Investment Business Act. They are accused of receiving 1.2 trillion KRW in investments from about 2,900 victims between April 2018 and June 2020 by claiming to invest in public institution-commissioned construction accounts receivable (construction payment claims) and using the funds for acquiring defective bonds or for 'Ponzi-like' fund operations.