Investors in the 'SG Satae' File Lawsuit Against CEO Ra Deok-yeon and Others

Investors who suffered losses from the 'SG (Soci?t? G?n?rale) Securities Stock Crash Incident' have filed a lawsuit against six individuals, including Ra Deok-yeon, the CEO of H Investment Advisory Firm, who is suspected of leading the incident.

On the afternoon of the 9th, Gong Hyung-jin, a lawyer from the law firm Daegeon representing investors affected by the stock price crash caused by SG (Soci?t? G?n?rale) Securities, headed to the Seoul Southern District Prosecutors' Office in Yangcheon-gu, Seoul, to file a complaint against Ra Deok-yeon, the CEO of H Investment Advisory firm, who has been identified as part of the stock manipulation group.
[Photo by Yonhap News]

On the 9th at 2 p.m., lawyers Gong Hyung-jin and Jo Jeong-yoon from the law firm Daegeon, representing 66 investors, submitted a complaint to the Seoul Southern District Prosecutors' Office against Ra and five others on charges of fraud, breach of trust, and concealment of criminal proceeds. The total number of plaintiffs is 66, with damages amounting to 135 billion KRW, including principal and credit loans.

The Daegeon legal team told reporters, "This case is not a simple stock price manipulation but a Ponzi scheme disguised as value investing," adding, "Most victims were not given clear explanations about the transactions and were unaware that their investments were being used as funds by Ra and his associates."

A second complaint is expected to be filed within the week. The Daegeon team stated that they have been contacted by about 150 clients so far, and the total damages are estimated to exceed 200 billion KRW. They said, "We are first filing the complaint on behalf of the 66 victims whose data has been collected. Additional data will be gathered, and a second complaint will be submitted in about a week."

There are also calls to halt the debt collection efforts currently being conducted by securities firms against the victims. Lawyer Gong said, "The securities firms were aware of the risks and have been collecting debts from victims relentlessly, including at night and on weekends, while earning huge commission profits," adding, "We also plan to file claims for damages against the securities firms."

Ra is accused of operating an investment advisory company without registration with financial authorities and embezzling investment profits and commissions obtained through market manipulation (violations of the Capital Markets Act regarding market manipulation and unregistered investment discretionary business, and the Act on Concealment of Criminal Proceeds).

He is also suspected of tax evasion by paying commissions through golf companies, fitness centers, and hospitals operated by his close associates.

Besides Ra, Daegeon has filed complaints against six individuals, including former professional golfer Ahn (33), who played a key role in recruiting investors; Byun (40), who managed VIP investors and the advisory firm; Jo (42), responsible for investor hospitality and collections; Jang, who managed trading schedules; and Kim, who handled profit settlements and corporate funds.

Meanwhile, the Seoul Southern District Prosecutors' Office's Joint Investigation Team on Financial and Securities Crimes (led by Dan Seong-han), along with the Financial Services Commission and the Financial Supervisory Service joint investigation team, arrested Ra at his residence around 10:25 a.m. on the same day. Recently, they conducted a search and seizure at Ra's office in Signiel, Songpa-gu, and reportedly obtained warrants for his communications and bank accounts.

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