Investors in 1 Trillion Loss Lime Incident...Daishin Securities and Former Banpo Center Manager Sued

[Asia Economy Reporter Park Ji-hwan] Investors in Lime Asset Management funds have filed a lawsuit against Daishin Securities, alleging that the company failed to properly inform them of the risk of losses during the fund sales process.

On the 21st, Attorney Kim Jeong-cheol of Law Firm Woori announced that on the 20th, representing four investors, he filed a complaint with the Seoul Southern District Prosecutors' Office against Daishin Securities and Jang, the former head of the Banpo WM Center, on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act.

At the same time, the investors also filed a civil lawsuit at the Seoul Central District Court seeking 2.6 billion KRW in damages from Daishin Securities.

Attorney Kim claimed, "The illegal fund management by Lime Asset Management was possible because the sales company actively raised funds, and at the center of this was Daishin Securities and Jang, the former head of the Banpo WM Center." He added that Jang, who moved to another securities firm in September last year, not only failed to properly inform about the risk of losses in the fund but also used expressions such as "completely stable" and "fixed interest product" during the sales process.

Law Firm Hannuri is also planning to recruit complainants until the 6th of next month to file complaints against Lime Asset Management and related parties and proceed with contract cancellation lawsuits. Hannuri had previously, on the 10th of last month, represented three investors in sub-funds related to the trade finance fund and filed complaints against Lime Asset Management, Shinhan Financial Investment, and Woori Bank officials.

This content was produced with the assistance of AI translation services.