[La Deok-yeon Gate] Prosecution Requests Seizure of 246.2 Billion KRW in Assets from La Deok-yeon and Associates

The prosecution investigating the 'SG Securities-led stock price crash incident' has begun freezing the assets of La Deok-yeon, CEO of Hoan (42), and other members involved in stock price manipulation.

[Image source=Yonhap News]

According to the legal community on the 16th, the joint investigation team comprising the Seoul Southern District Prosecutors' Office Financial and Securities Crime Joint Investigation Unit, the Financial Services Commission, and the Financial Supervisory Service filed a request for 'pre-indictment seizure and preservation' of assets worth 264.2 billion KRW belonging to La and other stock price manipulation members on the 12th. Pre-indictment seizure and preservation is a procedure that freezes assets equivalent to the proceeds of crime before the suspect is indicted, preventing their disposal.

The prosecution believes that the stock price manipulation group gained an unfair profit of 264.2 billion KRW through market manipulation and took 132.1 billion KRW as commissions. They also plan to secure the suspects' overseas hidden assets.

La, considered the core of the stock price manipulation, along with his closest aide Byun Mo (40) and former professional golfer Ahn Mo (33), are detained on charges of violating the Capital Markets Act and the Act on Concealment of Criminal Proceeds.

La and others are accused of operating a quasi-investment advisory firm, recruiting investors, and conducting collusive trading through mobile phones registered under these investors' names to boost stock prices. There are also suspicions that they concealed criminal proceeds by receiving part of the investment profits as commissions through a golf academy, fitness center, and restaurants.

※ This SG Securities-led 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 La Deok-yeon’s group, and details related to the large-scale 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.