[La Deok-yeon Gate] 'SG-triggered Stock Plunge' La Deok-yeon Arrested... "Risk of Flight and Evidence Tampering"

Suspected Violations of the Capital Markets Act... Arrest Expected to Accelerate Investigation

Ra Deok-yeon, CEO of Hoan, identified as a key figure in the stock price crash incident triggered by Societe Generale (SG) Securities, was arrested on the 11th.

[Image source=Yonhap News]

Yoo Hwan-woo, the chief judge in charge of warrants at the Seoul Southern District Court, conducted a pre-arrest suspect interrogation (warrant substantive examination) for CEO Ra, who is accused of violating the Capital Markets Act (price manipulation, unregistered investment discretionary business) and the Act on the Aggravated Punishment of Specific Economic Crimes related to concealment of criminal proceeds, and subsequently issued an arrest warrant. Judge Yoo stated the reason for issuance, citing "risk of flight and concern over evidence destruction."

At around 10 a.m. on the same day, CEO Ra entered the pre-arrest suspect interrogation without responding to reporters' questions such as "Do you admit to the charge of price manipulation?" and "Do you have any words for the investors?" and proceeded into the court.

CEO Ra is suspected of manipulating stock prices through collusive trading by buying and selling stocks using investors' mobile phones under their names to drive up stock prices. He is also accused of operating an unregistered quasi-investment advisory firm, recruiting investors, and embezzling investment profits and fees.

Earlier, on the 9th, the Joint Investigation Team for Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office arrested CEO Ra, Byun Mo (40), who oversaw the investment advisory firm, and An Mo (33), a former professional golfer who recruited high-value investors. The detention hearings for Byun and An will be held on the 12th at the Seoul Southern District Court.

※ This SG Securities-triggered stock price crash incident has sounded an alarm for the order of the capital market. Readers’ reports will be a great help in uncovering the truth. We welcome any reports regarding investment damage cases, suspicions of stock price manipulation and asset concealment by Ra Deok-yeon’s side, and details related to the mass sales by major shareholders of Dow Data and Seoul Gas (jebo1@asiae.co.kr). Asia Economy will do its best to establish a transparent capital market order.