The prosecution has requested a 40-year prison sentence and an astronomical fine in the trillions of won for Ra Deok-yeon (42), the head of an investment advisory firm who was indicted as the main culprit in the Soci?t? G?n?rale (SG) securities-related stock manipulation scandal. This comes about 1 year and 6 months after the first trial began in May last year.
On the 14th, at the sentencing hearing held before the 11th Criminal Division of the Seoul Southern District Court (Chief Judge Jeong Do-seong), the prosecution requested a 40-year prison sentence for Ra, who is charged with violations of the Capital Markets Act (price manipulation, unregistered investment discretionary business, etc.), the Act on the Aggravated Punishment of Specific Crimes (issuance of false tax invoices, etc.), and the Act on Concealment of Criminal Proceeds. Additionally, the prosecution sought a fine of 2.359 trillion won and a confiscation amount of 12.7 billion won.
The prosecution stated, "Defendant Ra Deok-yeon is the primary cause of this case," and added, "He consistently denied the crimes, gained enormous profits from the offenses, and caused numerous victims," thus making the above demands.
Fourteen accomplices who were involved in Ra’s organization or participated in the price manipulation crimes were also each requested to receive prison sentences ranging from 3 to 20 years.
Former professional golfer Ahn Mo, who was close to Ra and is accused of attracting investors and tax evasion through settlement corporation accounts, was requested to receive a heavy sentence of 20 years in prison. The prosecution also requested a fine of approximately 2.23 trillion won, which is three times the scale of the price manipulation, and a confiscation of about 12 billion won. The prosecution said, "Ahn was clearly the third-ranking member of the organization and led the crimes. He always accompanied Ra, conducted sales activities targeting investors, and a significant amount of investment was attracted through his father, a business figure. There are also additional charges of tax evasion."
Ju Mo, director of rehabilitation medicine who was not a member of Ra’s organization but played a role in attracting investors mainly among doctors, was sentenced to 15 years in prison, and Jo Mo, an organization member responsible for investor management, was sentenced to 12 years in prison.
Kim Mo, who was a corporate finance team leader at a commercial bank at the time of the crime, and Han Mo, a securities company manager, were each requested to receive a 10-year prison sentence. Mr. A is accused of attracting bank customers as investors and receiving 250 million won in return. Mr. B is accused of arranging the lending of securities accounts under customers’ names and 16.8 billion won of securities company customers’ money to Ra’s organization, receiving about 295 million won in return.
For other accomplices in Ra’s organization charged with attracting and managing investors, leading the trading team, and lending settlement corporation accounts, the prosecution requested prison sentences ranging from 3 to 8 years, considering the degree of their involvement.
They are accused of attracting investment funds from investors through illegal unregistered investment discretionary business from May 2019 to April last year, manipulating the prices of eight listed companies, and obtaining unfair profits amounting to 737.7 billion won. The prosecution has defined Ra’s organization as the largest-ever "corporate-type nationwide stock manipulation organization," with over 60 individuals indicted in connection with the case.
The verdict is scheduled to be delivered on January 23 next year.
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