The prosecution has requested a 40-year prison sentence and an astronomical fine in the trillions of won against 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 one year and six 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 (Presiding Judge Jeong Do-seong), the prosecution requested that Ra be sentenced to 40 years in prison on charges including violation of the Capital Markets Act (price manipulation, unregistered investment discretionary business, etc.), violation of the Act on the Aggravated Punishment of Specific Crimes (issuance of false tax invoices, etc.), and violation of the Act on Concealment of Criminal Proceeds. Additionally, they 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," justifying their sentencing request.
Throughout the first trial, the prosecution and Ra’s defense team fiercely disputed the establishment of the 'price manipulation' charge. Ra’s defense argued, "This case is entirely different from previously handled stock manipulation cases," and criticized, "If a ruling is made that a price increase due to accumulation is considered price manipulation, it is questionable whether foreign investors would readily decide to invest in the Korean stock market." The defense also raised questions about the exclusion of CJ from prosecution, despite CJ being among the stocks invested in by Ra’s organization, aside from the eight stocks included in the indictment. The defense stated, "It seems this indictment is less about punishing the illegality of the defendant’s trading patterns and more about shifting the blame for the market crash onto the defendant."
In his final statement, Ra expressed, "I sincerely apologize for causing social unrest," but reiterated his previous claim, "This case, triggered by the limit-down event on April 24, 2023, involving nine stocks, was never something I intended or planned."
Meanwhile, 14 accomplices who were active in Ra’s organization or involved in the price manipulation crimes were each sentenced to prison terms ranging from 3 to 20 years.
Former professional golfer Ahn, who was close to Ra and is accused of attracting investors and tax evasion through the settlement corporation’s accounts, was sentenced to 20 years in prison. The prosecution also requested a fine of approximately 2.23 trillion won, three times the scale of the price manipulation, and a confiscation amount of about 12 billion won. The prosecution stated, "Ahn was clearly the third-in-command of the organization and led the crimes," adding, "He always accompanied Ra in investor sales activities, secured many investments through his father, a business figure, and has additional tax evasion charges."
Joo, the head 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, an organization member responsible for investor management, was sentenced to 12 years.
Kim, who was a corporate finance team leader at a commercial bank at the time of the crimes, and Han, a securities company manager, were each sentenced to 10 years in prison. Kim is accused of attracting bank customers as investors and receiving 250 million won in return. Han is accused of arranging the lending of securities accounts under customer names worth 16.8 billion won to Ra’s organization and receiving about 295 million won in return.
For other accomplices in Ra’s organization charged with investor attraction and management, trading team leadership, and lending of settlement corporation accounts, the prosecution requested prison terms ranging from 3 to 8 years, considering their degree of 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’ stocks, 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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