[Asia Economy Reporter Kwon Jae-hee] Lee Cheol (57), former CEO of Value Invest Korea (VIK), who is currently imprisoned after being convicted for illegal investment solicitation, was additionally indicted on the 19th for embezzling hundreds of billions of won in investment funds.
The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Lee Seung-hyung) announced on the same day that Lee was additionally charged with fraud involving approximately 43.7 billion won and violation of the Door-to-Door Sales Act involving approximately 685.3 billion won, and was referred to trial.
The newly added charges allege that from September 2015 to September of the following year, Lee deceived about 4,000 investors in the "VIK Fund" by promising to invest in promising companies and pay profits, thereby embezzling 43.741 billion won (fraud).
He was also charged with violating the Door-to-Door Sales Act by conspiring with VIK executives to operate an unregistered multi-level marketing organization and raising 685.3 billion won from November 2012 to September 2015.
The prosecution explained that these charges are related to the ongoing first trial for fraud and violation of the Door-to-Door Sales Act against Lee, and since the methods of the crimes are similar, the fraud charges were consolidated for prosecution, and the violation of the Door-to-Door Sales Act was added through an indictment amendment.
The prosecution has been investigating since July 2020 after receiving a complaint from the VIK Victims' Association, tracking the flow of funds and summoning related parties for investigation.
Lee, who operated VIK from 2011 to 2016, was sentenced to a total of 14 years and 6 months in prison for violating the Capital Markets Act and fraud by raising about 700 billion won from approximately 30,000 people without financial authorities' approval, and is currently incarcerated.
Lee is also known as a figure involved in the so-called "Channel A incident," which triggered the conflict between former Minister of Justice Choo Mi-ae and President Yoon Suk-yeol (then Prosecutor General) in 2020.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
