'Unfair Profits from Prearranged Trading' Former Hana Financial Investment CEO and Analyst Indicted
The Joint Securities Crime Investigation Unit, which investigated securities and financial crimes, officially relaunched on the 1st after about a year and a half since its abolition, with a new name. The photo shows the building directory installed in the lobby of the Seoul Southern District Prosecutors' Office annex on that day. Photo by Hyunmin Kim kimhyun81@
View original image[Asia Economy Reporter Yoo Byung-don] The former CEO of Hana Financial Investment, who engaged in 'front-running' by purchasing stocks before issuing corporate analysis reports and selling them afterward to secure profits, has been brought to trial.
The Seoul Southern District Prosecutors' Office Financial and Securities Crime Investigation Cooperation Team (Head Park Sung-hoon) announced on the 28th that former Hana Financial Investment CEO Lee and former analyst A have been indicted without detention on charges including fraudulent unfair trading under the Capital Markets Act and use of undisclosed insider information.
According to the prosecution, former CEO Lee is accused of asking analyst A from February 2017 to September 2019 to "inform him in advance about stocks related to (unpublished) corporate analysis reports," purchasing those stocks, and then selling them after the reports were published. He traded a total of 47 stocks in this manner, gaining illicit profits amounting to 145 million KRW.
Analyst A was also investigated for purchasing 9 stocks in advance before corporate analysis report announcements from January 2018 to April last year, earning profits of 14 million KRW. It was also found that A conducted approximately 90 stock transactions using an account under his wife's name.
Additionally, the prosecution summarily indicted three Hana Financial Investment employees on the same charges, while one employee received a suspended indictment.
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The Financial Supervisory Service detected former CEO Lee's front-running allegations in February last year and requested an investigation by the prosecution.
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