Two Former Executives Related to Lime Scandal Indicted and Detained for Embezzlement of 50 Billion Won

Former Vice President Lee Jong-pil, the 'Rhyme Scandal' Main Figure, Also Newly Indicted

Two former executives of an affiliated company, accused of embezzling a total of around 50 billion won by submitting false documents to Lime Asset Management, which caused a redemption suspension crisis worth 1.6 trillion won, have been brought to trial.

On the 21st, the Financial Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Ha Dong-woo) announced that A (45) and B (50), former executives of the real estate developer Metropolitan, were arrested and indicted on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).

Lee Jong-pil (45), former vice president of Lime, and C (47), a former executive of the company, were also indicted without detention on the same charges.

Lee, who was sentenced to 20 years in prison and fined 4.8 billion won in 2022 and is currently serving his sentence, has been additionally indicted this time. Another 'Lime mastermind,' Kim Young-hong, former chairman of Metropolitan, fled overseas and is currently on Interpol's red notice.

According to the prosecution, in December 2018, Lee and others deceived Lime by making it appear that they were receiving investments in legitimate businesses from the Metropolitan Group, thereby fraudulently obtaining 30 billion won in fund money. They carried out these acts in an attempt to acquire Isla Casino in the Philippines, where illegal gambling establishments were set up.

A and B were also charged with exploiting vulnerabilities in Lime's investment decision system by submitting false financial documents in April 2019, hiding the purpose of using the funds for personal business, and pocketing 21 billion won. During the operation of the acquired corporation, they also embezzled 6.4 billion won of corporate funds by paying false salaries.

While Lee was on trial for violating the Act on the Aggravated Punishment of Specific Economic Crimes related to Lime, he demanded A to commit perjury in court, and as a result, A committed perjury. Both were charged with perjury inducement and perjury, respectively.

Lee received 2.5 billion won by dividing shares of Metropolitan affiliates, in which Lime funds were invested, with former chairman Kim, and sent letters to A urging him to retract his statements to the prosecution regarding this matter.

In response, A perjured himself by stating, "Lee did not hold shares under a borrowed name," and Lee was acquitted of this part in November 2022.