Court: "Crime that Destroys the Capitalist System"
[Asia Economy Reporter Yoo Byung-don] A corporate raider indicted on charges including no-capital mergers and acquisitions (M&A), stock price manipulation, and embezzlement of company funds related to the Lime Asset Management scandal was sentenced to 20 years in prison in the first trial.
The Criminal Division 14 of the Seoul Southern District Court (Presiding Judge Kim Dong-hyun) sentenced Cho (42), who was detained and indicted for violating the Capital Markets and Financial Investment Services Act (Capital Markets Act) and other charges, to 20 years in prison and a fine of 30 billion KRW on the 29th.
The court stated the sentencing reasons, saying, "The defendant's crimes are very serious in themselves, regardless of Lime, as he used multiple listed companies in a series of crimes," and "Ultimately, this resulted in undermining the trust of general investors in the stock market."
It added, "The various new businesses conducted by Cho had no substance and were merely means to drive up stock prices," and "These crimes can only be seen as acts that undermine the capitalist system."
Cho was detained and indicted on charges of manipulating stock prices through false disclosures after acquiring Esmo, an automotive parts company listed on KOSDAQ, together with Chairman Lee (54, currently wanted), known as the 'mastermind' of no-capital M&A and the real owner of Esmo.
After driving up Esmo's stock price, Cho succeeded in 'exit' (investment recovery) by transferring part of the shares to Lime, reportedly gaining illicit profits worth around 50 billion KRW.
After Cho sold his shares, Esmo's stock price plummeted, and illegal acts such as false disclosures were revealed, leading to a suspension of trading. Additionally, Lime lost most of its investment in Esmo, causing significant losses to fund subscribers.
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