A Bold New Securities Firm Employee Sentenced to Prison for Embezzling 1.3 Billion Won of Company Funds

Invested Embezzled Money in Personal Use and Cryptocurrency

[Asia Economy Reporter Yoo Byung-don] A new employee at a securities firm who embezzled more than 1.3 billion won of company funds was sentenced to prison in court.

On the 9th, Judge Lee Sang-hoon of the Seoul Southern District Court Criminal Division 11 announced that he sentenced B (28), a former employee of A Investment Securities, who was indicted on charges of embezzlement in the course of business, to 2 years and 6 months in prison.

B, who joined Company A in October 2018, was prosecuted for embezzling about 1.32 billion won of funds from a special purpose company (SPC) of Company A by transferring the money to his personal account over the course of one month starting from the end of June 2019. This SPC was a paper corporation created by Company A to manage funds for a real estate project.

B was affiliated with the IB (Investment Banking) division of Company A and was in charge of managing the SPC’s corporate bank account passbook and seal. It was investigated that he decided to commit the crime after facing financial difficulties at home and receiving debt collection demands from financial institutions.

It was also found that B used the embezzled money for personal purposes and invested some of it in cryptocurrency.

The court stated the sentencing reasons, saying, "The embezzled amount of 1.3 billion won has not been recovered, and the crime was committed by a securities company employee taking advantage of the opportunity to perform his duties, which is a serious offense. However, considering that he admitted the crime, showed remorse, and has no prior criminal record."

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