[La Deok-yeon Gate] Three Accomplices Including 'SG Incident' Treasurer Arrested for "Risk of Flight and Evidence Tampering"

Three individuals, including the treasurer, who were identified as accomplices in the 'SG Securities-triggered Crash Incident' along with CEO Ra Deok-yeon Hoan (42), have been arrested.

[Image source=Yonhap News]

On the afternoon of the 1st, Judge Kim Ji-sook, in charge of warrants at the Seoul Southern District Court, issued arrest warrants for Jang (35), Park (37), and Cho (41), who are accused of violating the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes related to concealment of criminal proceeds. Judge Kim explained the reason for issuing the warrants, citing concerns over flight risk and evidence tampering.

The three individuals were identified as members of the group that manipulated stock prices together with CEO Ra Deok-yeon Hoan (42) in connection with the 'SG Securities-triggered Crash Incident.' Within the stock price manipulation group, Jang was in charge of finance and management of criminal proceeds, Park oversaw the stock trading team responsible for market manipulation, and Cho managed investment attraction and client relations.

Earlier, the prosecution had indicted CEO Ra, his closest aide Byun (40), and former professional golfer Ahn (33) on the same charges and arrested them on the 26th.

According to the prosecution, Ra Deok-yeon and others are accused of manipulating the stock prices of eight stocks through collusive trading from May 2019 to last April, gaining illicit profits amounting to 730.5 billion KRW.

They are also accused of attracting discretionary investment clients worth thousands of billions of KRW without registering as financial investment businesses from January 2019 to last April, and managing Contracts for Difference (CFD) accounts on behalf of clients, earning illicit profits of 194.4 billion KRW.

Furthermore, from April 2020 to last April, the group is accused of using approximately 194.4 billion KRW of criminal proceeds earned under the name of commissions to make payments through a 'card kkang' method via corporations where the group members were registered as inside directors or representatives, including restaurants and golf courses, or by transferring funds to nominee accounts.

※ This SG Securities-triggered stock price crash incident has sounded an alarm for the order of the capital market. Readers’ tips will be a great help in uncovering the truth. We welcome any information regarding investment damage cases, suspicions of stock price manipulation and asset concealment by Ra Deok-yeon’s group, or insider details about the mass sales by major shareholders of Dow Data and Seoul Gas. Please send your tips to jebo1@asiae.co.kr. Asia Economy is committed to establishing a transparent capital market order.