Prosecution Seeks 4-Year Prison Sentence for Lime Headquarters Chief Over 'Ponzi Scheme' Allegations

Prosecutors: "Concealed Negligence, Worsened Damage"
Former Director Kim: "Followed Lee Jong-pil"

[Asia Economy Reporter Yoo Byung-don] Kim, former head of Lime Alternative Investment Management, who is accused of engaging in a Ponzi-like investment scheme to conceal the insolvency of Lime Asset Management funds, has been sentenced to four years in prison.

On the 26th, during Kim's final trial held at the Seoul Southern District Court Criminal Division 12 (Presiding Judge Oh Sang-yong), the prosecution requested this sentence, stating, "If the insolvency had been disclosed, the damage could have been minimized, but they deceived others by pretending to earn profits in a normal manner, thereby increasing the losses."

Previously, Kim was prosecuted on charges including breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes for causing approximately 20 billion KRW in losses to the fund by conspiring with former Lime Vice President Lee Jong-pil to purchase distressed bonds at inflated prices using other fund money in a Ponzi-like scheme after the companies Lime invested in suffered losses due to audit opinion rejections.

In response, Kim's side argued, "Former Vice President Lee had overwhelming decision-making authority, making it difficult for employees to act against him," and "There was no economic gain related to the Lime incident."

Kim's sentencing trial is scheduled for the 26th of next month.

Meanwhile, Kim was also indicted for investing 19.5 billion KRW of Lime Asset Management's funds into Star Mobility, owned by Chairman Kim Bong-hyun, and assisting in using these funds for purposes other than originally agreed. He was previously sentenced to five years in prison and fined 3.5 billion KRW in the first trial last year.