The court ruled to cancel the heavy disciplinary action imposed by financial authorities on Jeong Young-chae, former CEO of NH Investment & Securities, in connection with the Optimus fund scandal.
The Administrative Court of Seoul, Administrative Division 14 (Chief Judge Song Gak-yeop) ruled in favor of the plaintiff on the 6th in the lawsuit filed by former CEO Jeong against the Financial Services Commission to cancel the reprimand warning.
Earlier, in November 2023, the Financial Services Commission finalized the Financial Supervisory Service's disciplinary action to issue a "reprimand warning" against former CEO Jeong for violating the obligation to establish internal control standards related to the sale of the Optimus fund. The reprimand warning is classified as a heavy disciplinary action that restricts reappointment and employment in the financial sector for 3 to 5 years.
Displeased with this, former CEO Jeong filed a cancellation lawsuit along with a request for suspension of execution. The court accepted the suspension request in January last year.
Former CEO Jeong served as CEO until March last year and was recruited as a standing advisor at Meritz Securities earlier this year.
The Optimus scandal involved soliciting investors by claiming to invest in accounts receivable guaranteed by public institutions and local governments, but instead investing in distressed companies' private bonds, causing damage amounting to 400 billion won. NH Securities was the largest distributor of the Optimus fund, which had its redemption suspended.
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