Prosecutors Demand Prison Sentences for Key Lobbyists in 'Optimus Fund Fraud' Case

Sentences of 5 and 4 Years Requested Respectively
Prosecution: "Severe Punishment Unavoidable"

[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] The prosecution has requested a 5-year prison sentence for a former entertainment agency CEO identified as a key lobbyist in the Optimus Asset Management (Optimus) fund fraud case.

On the 16th, at the sentencing hearing held before the Criminal Division 33 of the Seoul Central District Court (Presiding Judge Noh Hoseong), the prosecution asked the court to impose this sentence on Mr. Shin. Another lobbyist, Mr. Kim, who was indicted alongside Shin, was sentenced to 4 years in prison. The prosecution stated, "The defendants flaunted their various connections in political and financial circles to approach Optimus CEO Kim Jaehyun and embezzled 1 billion KRW. They squandered the money received from Kim Jaehyun, which was investment funds that caused investors great losses, on entertainment expenses and the like." The prosecution added, "When the Financial Supervisory Service began an investigation into Optimus Asset Management, the defendants attempted to cover up the crime by trying to deliver bribes. Considering the social harm caused by the defendants' crimes and the fact that the damages have not been recovered at all, severe punishment is inevitable."

In his final statement, Mr. Shin said, "I deeply repent my shortcomings and mistakes and offer my apologies," but also stated, "I was not the top lobbyist or the chairman of Optimus as reported by the media." He continued, "I thought it was an asset management company that could invest in businesses I was interested in, and I never dreamed it would lead to such a serious outcome and make me a criminal. I will do my best to restore the damages." Mr. Kim said, "I met CEO Kim Jaehyun at a late age and thought that being recognized by him meant a bright future, but that was not the case. I reflect and regret every day." He also appealed for leniency, saying, "If given another chance, I will become a valuable member of society and my family."

Mr. Shin and others were brought to trial on charges of receiving money from CEO Kim Jaehyun under the pretext of lobbying financial circles. They are also accused of delivering bribes worth hundreds of millions of won to key shareholders of Haeduck Powerway, a ship supplies manufacturer acquired with Optimus funds, in exchange for exercising voting rights. The court has scheduled the sentencing hearing for these individuals on the 14th of next month.