Court: "Risk of Evidence Destruction and Flight"
The former head of LS Securities, suspected of embezzling funds worth hundreds of billions of won using undisclosed information obtained through his duties, has been arrested.
On the 28th, Nam Cheon-gyu, the presiding judge in charge of warrants at the Seoul Central District Court, conducted a detention hearing (pre-arrest suspect interrogation) for Kim Mo, the former head of LS Securities, who was indicted on charges of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (bribery, etc.). After the hearing, he issued an arrest warrant, stating there was a risk of evidence destruction and flight.
Arrest warrants for former and current LS Securities executives Yoo Mo and Hong Mo, charged with violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (breach of trust) and other charges, were dismissed. Judge Nam ruled, "Considering the evidence secured so far, the suspect’s residence, family relations, and occupation, it is difficult to see a risk of evidence destruction or flight at this stage."
According to the prosecution, they are accused of directly conducting a real estate project financing (PF) business using undisclosed information obtained through their duties and illegally transferring PF loan funds amounting to 83 billion won outside the project operator.
This prosecution investigation began upon a request from the Financial Supervisory Service. Last month, about ten locations, including the headquarters of LS Securities and Hyundai Construction, were raided and searched.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
