Ex-Stockbroker Sentenced for Embezzling 2.2 Billion KRW in Client Stocks and Fleeing Abroad...

Court: "Considering Deep Reflection and Partial Compensation for Some Victims"

[Asia Economy Reporter Yoo Byung-don] A former employee of a major securities firm who embezzled stocks worth billions of won entrusted by clients and fled overseas for over 10 years has been sentenced to prison.

The Criminal Division 13 of the Seoul Southern District Court (Presiding Judge Shin Hyuk-jae) announced on the 16th that it sentenced Lee Mo (51), a former employee of securities firm A, who was prosecuted for violating the Act on the Aggravated Punishment of Specific Economic Crimes, to two years in prison.

Lee, who worked as a manager at branch A in Goyang, Gyeonggi Province from late 2002 to early 2006, was arrested and indicted on charges of embezzling and disposing of 114,577 physical stocks belonging to five clients at his discretion. The stocks embezzled by Lee were worth a total of 2.2 billion won at market value. The amount Lee owes to firm A, which compensated for the damages, exceeds 1.6 billion won.

Investigations revealed that Lee diverted clients' stocks into accounts of acquaintances. During this process, he engaged in a 'ponzi scheme' by withdrawing stocks from one victim's account and repaying with stocks from another victim's account. After the crime was uncovered, Lee quit firm A in 2006 and fled to Australia, living as a fugitive for 13 years and 6 months.

The court explained the sentencing by stating, "The defendant restored some of the victims' losses before fleeing," and "considered the defendant's deep remorse."

Both the prosecution and defendant Lee have appealed the verdict.

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