Court Orders Ra Deok-yeon in 'SG Incident' to Pay 24.8 Billion Won to Victims

The court ordered Ra Deok-yeon, CEO of Hoan (42), a key figure in the 'SG Securities Stock Price Crash Incident,' to pay approximately 24.8 billion KRW to the victims.

[Image source=Yonhap News]

According to the legal community on the 14th, the Daegu District Court Gyeongju Branch confirmed on the 12th an order for CEO Ra to pay a total claim amount of 24,836,232,121 KRW and an additional collection procedure cost of 7,873,200 KRW to 36 victims. From the date the payment order information was delivered on the 28th of last month, the debtor Ra was given a two-week period to file an objection, but he did not file any objection.

CEO Ra is currently on trial at the Seoul Southern District Court after being arrested and indicted in May on charges of violating the Capital Markets Act and the Act on the Regulation of Concealment of Criminal Proceeds. According to the prosecution, from May 2019 to last April, they are accused of manipulating the stock prices of eight listed companies, including Samchully and Daou Data, through collusive trading using thousands of billions of KRW raised from investors, obtaining an unfair gain of 730.5 billion KRW.

He is also accused of attracting investors without registering as a financial investment business from January 2019 to last April and managing Contracts for Difference (CFD) accounts under customers' names on a consignment basis, gaining about 194.4 billion KRW in unfair profits. Additionally, from April 2020 to last April, he is charged with laundering and concealing criminal proceeds by using fees received from investors to pay at golf courses, restaurants, and other venues.

Han Sang-jun, lead attorney at Law Firm Daegeon representing the investment victims, said, "The payment order decision document can be used as evidence to prove that one is a crime victim when proceeding with the restitution process later."