'Optimus Broker' Former Entertainment Agency CEO Sentenced to 4 Years in First Trial

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] A former entertainment agency CEO suspected of acting as a key broker for Optimus Asset Management (Optimus), which committed a fund fraud worth over 1 trillion won, was sentenced to prison in the first trial.

The Seoul Central District Court Criminal Division 33 (Presiding Judge No Ho-sung) sentenced broker Shin Mo, a former entertainment agency CEO, to four years in prison on the 14th. Another broker, Kim Mo, who was also indicted, was sentenced to three years and six months in prison.

Shin and Kim are suspected of using an office provided by CEO Kim in Gangnam-gu, Seoul, to conduct illegal lobbying with political and business figures to secure Optimus’s interest projects.

The prosecution believes Shin boasted of his political and business connections and acted as a broker, while Kim served as Shin’s secretary.

The court pointed out, "The defendants abused the trust of Optimus CEO Kim Jae-hyun and, knowing that the money they received was from numerous investors, embezzled 1 billion won."

It added, "Despite the gravity of the case and the bad nature of the crime, including using the embezzled money for entertainment expenses, mistress living expenses, and personal debt repayment, they have shown no remorse and are evading responsibility."

The two were found guilty of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes for deceiving minority shareholders by promising to give bribes related to exercising voting rights at the temporary shareholders' meeting of ship parts company Haeduck Powerway, receiving 1.65 billion won from CEO Kim, handing only 650 million won to the minority shareholder representative, and pocketing the remaining 1 billion won.

However, they were acquitted of charges of violating the Attorney-at-Law Act for receiving 20 million won from CEO Kim, allegedly to request a favor regarding the Financial Supervisory Service’s inspection of Optimus.

The court ruled, "Based solely on the evidence submitted by the prosecution, there is no proof that the defendants received 20 million won under the pretext of a request or mediation."