Prosecutors Detain Former Bank Employee Leading Sales of 'I Healthcare Fund'

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Seoyul] A former Hana Bank employee who led the sales of the private equity fund 'Italia Healthcare Fund,' which caused a large-scale suspension of redemptions, has been arrested.

The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Chae Heeman) announced on the 26th that Shin, a deputy general manager at Hana Bank, was arrested on charges of violating the Capital Markets Act and fraud. The Italia Healthcare Fund is a product that invests in medical fee accounts receivable that Italian hospitals claim from local governments.

Shin led the sales of the Italia Healthcare Fund worth about 152.8 billion KRW while working in the investment products department of Hana Bank from October 2017 to September 2019. However, repayments were delayed from the end of 2019, and redemptions were suspended the following year.

Shin is suspected of failing to properly inform investors of the risk of loss, claiming that "as long as the Italian government does not default, the investment principal can be recovered stably."

After resigning on September 30, 2019, Shin left for Singapore. The prosecution launched an investigation following complaints from investors, issued an arrest warrant for Shin, and invalidated his passport. Shin, who became an illegal resident, recently expressed his intention to return to Korea to the prosecution investigation team and was arrested immediately after returning on the 21st.

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