Jaan Group CEO Sued for Embezzlement During Bail Period

[Asia Economy Reporter Jang Hyowon] The CEO of Jaan Group, who was indicted and detained last year on charges of fraud and embezzlement, has been sued again for embezzlement during the bail period.

According to industry sources on the 14th, Mr. An, the CEO of Jaan Group, was sued by Jaan Bio, where he served as CEO, for embezzlement amounting to approximately 400 million KRW.

According to the complaint from Jaan Bio, Mr. An established a corporation called "Slimberry" last March and transferred about 400 million KRW from Jaan Bio's account to Slimberry's account in three separate transactions. Slimberry is a corporation where Mr. An is the sole inside director, and Jaan Bio believes that Mr. An took the money for personal use.

Additionally, Jaan Bio claims that Mr. An withdrew tens of billions of KRW beyond the direct cash transfers. Between March and April, an employee of Jaan Bio allegedly withdrew tens of billions of KRW in sales proceeds from Jaan Bio's Vietnam and India subsidiaries and sent the funds to Slimberry.

According to Jaan Bio, the employee who withdrew the money and transferred it to Slimberry did not use online banking but visited the bank in person, meticulously filling out withdrawal slips by hand to withdraw the funds.

Previously, Mr. An served as the CEO of Jaan Bio, a KOSDAQ-listed company, and Jaan Cosmetic (now DYD) until last year. In June of last year, he was indicted and detained on charges including violation of the Customs Act, Capital Markets Act, and the Act on the Aggravated Punishment of Specific Economic Crimes (fraud, embezzlement).

According to the prosecution, Mr. An manipulated export prices to report false sales and raised funds through this. He also embezzled part of the company’s funds to purchase personal stocks and real estate. He is also accused of large-scale accounting fraud and embezzlement of small and medium enterprise support funds.

Mr. An, who is facing these charges, is reported to have been released on bail at the end of last year.

Meanwhile, Jaan Bio was delisted after the maturity default of promissory notes in September last year, following Mr. An’s detention.