[La Deok-yeon Gate] Prosecution Indicts La Deok-yeon and 2 Others in 'SG Incident'... Warrants Requested for 3 More (Update)

The prosecution investigating the 'SG Securities-led stock price crash incident' has arrested and indicted three individuals involved in stock price manipulation, including CEO Ra Deok-yeon Hoan (42), and has requested arrest warrants for three other main perpetrators.

On the 26th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Dan Seong-han) announced that they have arrested and indicted CEO Ra, his close aide Byun Mo (40), and former professional golfer Ahn Mo (33) on charges of violating the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes related to concealment of criminal proceeds.

The prosecution also applied the same charges to Jang Mo (35), Park Mo (37), and Jo Mo (41), who were centrally involved in the stock price manipulation, and requested arrest warrants before indictment. Jang was in charge of finance and management of criminal proceeds, Park oversaw the stock trading team for market manipulation, and Jo managed investment attraction and client relations.

[Image source=Yonhap News]

According to the prosecution, CEO Ra and others are accused of manipulating the stock prices of eight listed companies, including Samchully and Dow Data, through 'collusive trading' from May 2019 to last April, using thousands of billions of won in investment funds raised from investors through profit agreements. The prosecution estimates that the group obtained approximately 730.5 billion won in illicit gains during this process.

Additionally, from January 2019 to last April, they are charged with attracting discretionary investment clients worth thousands of billions of won without registering as financial investment businesses and managing CFD accounts on behalf of clients. Through this, they are believed to have earned about 194.4 billion won in illicit profits.

From April 2020 to last April, the group is also accused of laundering and concealing about 194.4 billion won in criminal proceeds earned under the name of commissions by using golf courses, restaurants, hospitals, etc., where the stock manipulation group registered as CEOs or inside directors, employing a 'card kkang' method or receiving payments through nominee accounts.

Earlier, the prosecution arrested the three main perpetrators, including CEO Ra, on the 9th and requested arrest warrants on the 11th. Judge Yoo Hwan-woo, in charge of warrants at the Seoul Southern District Court, conducted pre-arrest hearings on the 11th and 12th and issued the arrest warrants, citing concerns over flight risk and evidence tampering.

※ This SG Securities-led stock price crash incident has sounded an alarm for the order of the capital market. Readers’ reports will be a great help in uncovering the truth. We welcome any reports regarding investment damage cases, suspicions of stock price manipulation and asset concealment by Ra Deok-yeon’s group, details about the large-scale sales by major shareholders of Dow Data and Seoul Gas, or any other related information (jebo1@asiae.co.kr). Asia Economy will do its best to establish a transparent capital market order.

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