Prosecution Indicts Deloitte Anjin Executive for Violation of Certified Public Accountant Act

[Asia Economy Reporter Baek Kyunghwan] Three officials from Deloitte Anjin Accounting Corporation have been brought to trial on charges of violating the Certified Public Accountant Act.

On the 19th, according to the legal community, the Criminal Division 9 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Jeong Jonghwa) indicted three executives of Deloitte Anjin for violating the Certified Public Accountant Act.

Earlier, Kyobo Life Insurance filed a complaint with the prosecution in April last year, alleging that Deloitte Anjin set a favorable valuation date to increase the exercise price when calculating the fair market value (FMV) of put options (the right to sell at a specific price) held by four of its financial investor (FI) corporations.

The prosecution views this as a violation of Article 15, Paragraph 3, which stipulates the fairness and sincerity obligations of certified public accountants, and Article 22, Paragraph 4, which prohibits name lending, under the Certified Public Accountant Act. These provisions include that certified public accountants must not submit false reports while performing their duties.

The prosecution also judged two FI officials who requested Deloitte Anjin to calculate the FMV as accomplices and brought them to trial.