'Illegal Fundraising' Lee Cheol, Former CEO of Value Invest Korea, Faces Additional Charges

Seven VIK Executives Also Indicted... Violations of Door-to-Door Sales Act and Fraud Charges

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] It has been confirmed that Lee Cheol, former CEO of Value Invest Korea (VIK), who was sentenced to prison for establishing an unlicensed investment company and raising large sums of money from investors by promising fixed returns, along with VIK executives and employees, have been additionally indicted.

According to the legal community on the 2nd, the Seoul Southern District Prosecutors' Office recently indicted a total of eight people, including former CEO Lee and VIK Vice President Beom Mo, on charges of violating the Act on Door-to-Door Sales and Fraud.

Earlier, the Financial Victims Solidarity, a group of victims of financial fraud including the VIK case, filed complaints with the Seoul Southern District Prosecutors' Office in July and December of last year against former CEO Lee and others on charges of habitual fraud and violation of the Door-to-Door Sales Act.

In this additional indictment, the prosecution did not indict some charges related to violations of the Capital Markets and Financial Investment Business Act and fraud, citing 'lack of prosecutorial jurisdiction.'

Former CEO Lee and others were tried and found guilty of raising approximately 700 billion KRW from about 30,000 people through crowdfunding via the unlicensed investment company VIK since 2011. The key figure, former CEO Lee, was sentenced to 12 years in prison by the Supreme Court in September 2019, while Vice President Beom and seven others received prison sentences ranging from 6 years to 1 year and 6 months.

During the trial, former CEO Lee was additionally indicted for allegedly attracting large-scale illegal investments again and was sentenced to 2 years and 6 months in prison in the appellate court in December last year. If this sentence is finalized, he will have to serve a total of 14 years and 6 months in prison.

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