Securities Firm Center Chief Arrested and Indicted for Concealing Loss Risks While Selling Lime Fund

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] A former securities firm center chief has been indicted for allegedly concealing the possibility of losses from investors while selling Lime fund products worth about 200 billion won.

The Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Jo Sang-won), which is investigating the Lime Asset Management incident, announced on the 8th that it has arrested and indicted Jang, the former head of the Banpo WM Center at Daishin Securities.

Jang is accused of selling Lime Asset Management funds worth about 200 billion won at Daishin Securities Banpo WM Center by falsely informing or misleading fund subscribers about important matters such as the possibility of losses.

He is also accused of borrowing 200 million won free of charge from clients with whom he had a professional relationship as compensation for asset management and using it for his own stock investments, and of arranging a loan of 1.5 billion won to a client at the request of Kim Bong-hyun, the actual owner of Star Mobility, with whom he had a professional relationship, and personally providing a joint guarantee.

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