"Didn’t Know It Was Embezzlement" Excuse Work?... Ostem Case Trial Resumes This Week

Second Trial on Crime Proceeds Concealment Charges Scheduled for the Morning of the 31st
Victims All Denied Charges in the First Trial
Prosecutor's Indictment Explicitly Details Criminal Activities

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] Specific evidence has emerged that the family of Lee Mo (44), the finance team leader of Osstem Implant accused of embezzling 221.5 billion KRW of company funds, attempted to conceal criminal proceeds.

Since they fully denied the charges in the first trial, fierce courtroom battles are expected in the second hearing scheduled for next week.

The Criminal Division 14 of the Seoul Southern District Court (Presiding Judge Kim Dong-hyun) will hold the second trial session at 10:40 a.m. on the 31st for Lee and three others charged with violating the Act on the Regulation and Punishment of Criminal Proceeds Concealment.

Lee and Family Fully Deny Charges: "We Didn’t Know the Money Was Embezzled"

In the previous trial, Lee’s side requested to separate the defense because the evidence against the employees accused of aiding and abetting differed from that of the defendant, so the defense for the employees will proceed separately.

In the first trial, Lee’s family members admitted that they purchased luxury resort memberships, three officetels, and commercial buildings together with Lee but denied knowing that the money came from embezzlement, fully rejecting the prosecution’s allegations.

However, the prosecution’s indictment detailed their crimes explicitly. According to the indictment exclusively obtained by Asia Economy through the office of Kim Do-eup, a member of the People Power Party, Lee appears to have mobilized his wife Park Mo, his sister-in-law, and his younger sister to conceal the embezzled funds. The amount spent on purchasing real estate and resort memberships is estimated to be much higher than the previously known 7.5 billion KRW.

Over 10 Billion KRW on Officetels, Commercial Buildings, Apartments, and Resort Memberships

First, in November 2021, Lee’s wife Park applied for an officetel unit in Wadong-dong, Paju-si, Gyeonggi-do, and purchased one unit for 1.8066 billion KRW. She then contracted to buy two additional unsold units for 874.1 million KRW and 876.8 million KRW respectively, and on December 29 of the same year, transferred 3.5575 billion KRW to an asset trust account under the name of a trust company for the officetel purchase.

One day before the large transfer, on December 28, Park met with employees of a resort membership exchange office along with her younger sister and purchased memberships for two resorts under her sister’s name for 311.66 million KRW. Around the same time, Park signed a contract to purchase a third resort membership through another exchange office. Lee transferred 3.4141 billion KRW to the exchange office’s account for the membership purchase and ten years of management fees.

On December 30, Lee withdrew 1.145 billion KRW in checks and cash and handed it to Park, who then purchased a commercial office unit in Wadong-dong, Paju-si. This commercial office was confirmed to be purchased under Park’s name.

The indictment also includes evidence of the sister-in-law Park and her husband’s involvement. Lee and his wife conspired with Park’s husband, Mr. A, to purchase an apartment in Siksa-dong, Ilsandong-gu, Goyang-si, Gyeonggi-do, for 1.65 billion KRW under the sister-in-law couple’s names. However, since they could not provide proof of the source of funds, they negotiated with the seller to sign a lease contract with a deposit of 1.2 billion KRW and agreed to issue an IOU for the remaining 450 million KRW. The prosecution views this as a de facto sales contract since Lee transferred 1.65 billion KRW to the seller’s account.

The total amount Lee and his family spent on purchasing real estate and resort memberships was 10.07826 billion KRW, significantly larger than the previously known 7.5 billion KRW.

New Charges Against Sister-in-Law and Younger Sister Also Included in Indictment

The indictment also includes new charges against Lee’s family members. Sister-in-law Park is charged with violating the Telecommunications Business Act for providing two mobile phones registered under her and her husband’s names to Lee. Lee’s younger sister is additionally charged with violating the Electronic Financial Transactions Act for transferring her check card to Lee’s deceased father.

Furthermore, detailed information about Lee transferring cash to accounts under his family members’ names was confirmed. From October 7 to December 28, 2021, Lee transferred 3.66983 billion KRW in 59 transactions to four accounts under his wife Park’s name. Park was investigated to have withdrawn 240 million KRW in cash at the end of December and handed it to Lee. Lee also transferred a total of 708.93 million KRW in 15 transactions to sister-in-law Park (584.83225 million KRW) and younger sister Lee (125.1 million KRW) from December 3 to 28 of the same year.

Additionally, the indictment states that Lee purchased 855 kg of gold bars for 68.17548 billion KRW at a gold exchange in Paju-si with his younger sister and concealed them at three locations: his father’s residence, his younger sister’s residence, and a building owned by Lee.

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