Search Conducted on the 23rd... More Than 4 Related Suspects
The prosecution has launched a full-scale forced investigation, including raiding the offices of Yeongpung Paper and Daeyang Metal, which have been suspected of market manipulation.
At 10:17 a.m. on the 20th, Yoon Mo and Lee Mo, who are accused of manipulating the stock price of Yeongpung Paper, are heading to the courtroom for a pre-arrest interrogation. Photo by Hwang Seoyul chestnut@
According to a Seoul Southern District Prosecutors' Office official on the 24th, the Joint Financial and Securities Crime Investigation Division (Chief Prosecutor Ha Dong-woo) conducted raids on the offices of Yeongpung Paper, Daeyang Metal, and Daeyang Holdings Company the previous day. The prosecution is investigating the cases of Yeongpung Paper and Daeyang Metal, which were flagged for unfair trading suspicions by the Financial Supervisory Service, having received them via a fast track.
A prosecution official hinted at the possibility of other suspects besides the four currently detained. The official stated, "It is not a matter involving only the four detained individuals." However, they refrained from commenting on whether a major player in the Myeongdong private loan market was involved or whether insiders of the companies were implicated in relation to Yeongpung Paper. Earlier, the prosecution requested arrest warrants for four individuals, including Yoon, suspected of violating the Capital Markets Act, and the warrants were issued on the 20th. They are accused of artificially inflating Yeongpung Paper's stock price by raising funds for stock price manipulation.
Yeongpung Paper's adjusted stock price, reflecting a free share issuance earlier this year, was 5,829 KRW but rose to 54,200 KRW in August. However, the stock price, which was 48,400 KRW until the 17th, dropped by 14,500 KRW to 33,900 KRW the following day. On the 18th, the Financial Services Commission, Financial Supervisory Service, and Korea Exchange suspended trading and requested disclosure inquiries for the two stocks, Yeongpung Paper and Daeyang Metal, which experienced a sharp price drop starting the previous day.
The prosecution official also mentioned that as the number of prosecutors at the Southern District Prosecutors' Office decreased, there was a reorganization of cases across departments. The 'Wemix Coin Issuance Fraud Case,' originally under the Virtual Asset Crime Joint Investigation Team, and the 'Large-scale Wemix Coin Holding Case of Democratic Party lawmaker Kim Nam-guk,' which was under the Criminal Division 6, have been transferred to the Financial Investigation Division 1. Additionally, drug-related investigations handled by Criminal Division 6 have been moved to Criminal Division 3.
Investigations into the AGOV and MPWR coin frauds were assigned to Criminal Division 5, not the Joint Investigation Team. Thirty-eight investors in AGOV and MPWR coins filed a complaint on the 20th against Club Rare CEO Jung (43) for violations of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and other charges. CEO Jung is accused of deceiving investors by claiming the coins would be listed on exchanges, collecting investment funds, and falsely disclosing cryptocurrency circulation volumes. The prosecution official said regarding the reassignment and adjustment of cases, "With six fewer prosecutors, reorganization of duties was inevitable."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
