'221.5 Billion Embezzlement' Ostem Implant Employee "Crime Committed Alone"... Sent to Prosecution (Comprehensive)

Police Statement in Investigation "Solo Crime Targeting Money and Goods"
Detained and Transferred to Prosecution on the Morning of the 14th
Police Apply for Seizure Preservation and Confiscation Before Indictment
Investigation of Family and Company Associates as Accomplices Continues

Lee Mo, who is accused of embezzling 221.5 billion KRW from Osstem Implant, is being transferred to the prosecution from Gangseo Police Station in Seoul on the 14th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Yoo Byung-don] Lee Mo (45, detained), an employee of Osstem Implant accused of embezzling 221.5 billion KRW of company funds, claimed that this incident was his sole act.

According to the police, Lee recently admitted to the charges during the investigation, stating, "I committed the crime alone to personally obtain money and valuables." Lee, a member of Osstem Implant's financial management team, has been under investigation after being detained on charges of transferring 221.5 billion KRW from the corporate account to his personal account eight times since March last year.

Accordingly, on the morning of the 14th at around 7:40 AM, the Gangseo Police Station in Seoul applied charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes and sent Lee to the prosecution. When Lee appeared before being sent to the prosecution, he did not respond to reporters' questions about his motive and boarded the transport vehicle silently.

The police identified the use of 188 billion KRW, the actual damage amount among the embezzled funds, and recovered the entire amount except for stock losses. This includes 855 gold bars weighing 1 kg each, purchased by Lee for 68.1 billion KRW. The 76.1 billion KRW loss from stock investments made by Lee is currently unrecoverable.

On the 12th, the police applied for pre-indictment seizure and confiscation preservation on Lee's assets worth approximately 33 billion KRW, including real estate, stocks, and deposits. Pre-indictment seizure preservation prevents the suspect from disposing of illegally acquired assets such as real estate before the court's verdict. Pre-indictment confiscation preservation is a measure to prevent the suspect from disposing of assets to recover the amount equivalent to the proceeds obtained through the crime if the suspect has used the criminal gains.

Separately from the prosecution transfer, the police plan to continue intensive investigations into the embezzlement process, including the existence of accomplices. The police verified whether Lee's statements matched the actual embezzlement process and conducted a search and seizure at Osstem Implant's headquarters in Magok-dong, Gangseo-gu, on the 12th to investigate the alleged accomplices. The police secured financial documents such as balance certificates and transaction records, as well as some internal messenger records and closed-circuit television (CCTV) footage.

Financial team employees who worked with Lee reportedly testified during police investigations that they forged balance certificates by changing balances using PDF editing software under Lee's instructions. The police also summoned and investigated five company officials, including Lee's supervisor.

Additionally, the police have also booked and are investigating Lee's wife, younger sister, and brother-in-law. Among them, Lee's wife and sister-in-law were judged to be accomplices and charged with embezzlement and concealment of criminal proceeds. The case filed by the Committee for the Protection of Ordinary Citizens against Chairman Choi Kyu-ok and CEO Eom Tae-gwan for violating the Capital Markets Act (price manipulation) was also assigned to the Gangseo Police Station.