'Raim Investment Firm Stock Manipulation' Group Sentenced to Imprisonment in First Trial

[Asia Economy Reporter Yoo Byung-don] A group indicted for spreading false information to boost the stock price of Kosdaq-listed company S-Materials, which received funds from Lime Asset Management funds, was sentenced to imprisonment in the first trial.

The Criminal Division 11 of the Seoul Southern District Court (Presiding Judge Lee Hwan-seung) on the 26th sentenced Park, the CEO of a similar investment advisory firm, to 3 years in prison and a fine of 500 million won for violating the Capital Markets Act. Park’s partner Kim was sentenced to 2 years in prison and fined 210 million won, and broker Jung, who was in charge of boosting the stock price, was sentenced to 2 years and 6 months in prison and fined 300 million won.

The court pointed out, "The act of mass spreading false information on the internet, etc., can undermine trust in the capital market," and judged, "The methods used during the execution, including illegal means, are also very inappropriate."

Furthermore, the court added, "The defendants claim it was an investment technique, not stock price manipulation, but based on the trading analysis results and testimonies from witnesses from the Korea Exchange, there are parts that are difficult to view as normal trading," and "Considering the overall trading patterns, it constitutes a violation of the Capital Markets Act."

They are accused of operating a similar investment advisory firm and spreading false information about Lime investment companies to boost stock prices. Investigations revealed that they posted false articles multiple times on various internet stock cafes, claiming free capital increases or new business ventures.

They are also accused of providing false information to paid members to induce stock purchases. Additionally, they are charged with manipulating market prices through unfair methods such as high-priced purchase orders.

Earlier, at the sentencing hearing held on the 10th, the prosecution requested 8 years imprisonment, a fine of 8 billion won, and a confiscation of 1.6 billion won for Park; 7 years imprisonment, a fine of 6 billion won, and a confiscation of 1.6 billion won for Kim. For Jung, who is accused of requesting stock price boosting, the prosecution requested 8 years imprisonment, a fine of 8 billion won, and confiscation of 800 million won.

Meanwhile, employees Kim and Hyun were each sentenced to 1 year and 6 months in prison and fined 80 million won.

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