[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The former CEO of Skin&Skin, a KOSDAQ-listed cosmetics company, who was indicted for involvement in the Optimus Asset Management fund fraud, has been sentenced to prison.
The Supreme Court's 2nd Division (Presiding Justice Cho Jae-yeon) announced on the 29th that it upheld the lower court's ruling sentencing former Skin&Skin CEO Lee to five years in prison on charges including embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.
In June 2020, Lee is accused of embezzling 15 billion KRW of Skin&Skin's funds by diverting them under the pretense of using them for a mask distribution business, then fabricating false transfer confirmation documents to the board of directors as if payment for mask purchases had been made.
The 15 billion KRW embezzled by Lee was transferred to E-People Plus, an Optimus affiliate engaged in mask wholesale and retail, and investigations revealed that most of the funds were used to prevent the suspension of redemptions in Optimus funds.
During the trial, Lee claimed he was unaware that the transfer confirmation documents were forged and denied any intent to embezzle, but these claims were rejected.
The trial courts in both the first and second trials stated, "The defendant attended the board meeting knowing that the transfer confirmation documents were forged, and it appears he was aware from the beginning that the mask business itself was not legitimate," and sentenced him to five years in prison.
The Supreme Court also found no issues with the lower courts' judgments.
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