Prosecutors Indict Three Including SG Scandal Treasurer Ra Deok-yeon

Three additional members of the group led by CEO Ra Deok-yeon (42) of Hoan, who are accused of stock price manipulation related to the 'SG Securities-triggered stock price crash incident,' have been indicted.

[Image source=Yonhap News]

On the 19th, the joint investigation team of the Seoul Southern District Prosecutors' Office, the Financial Services Commission, and the Financial Supervisory Service announced that they have arrested and indicted Park (37), Jang (36), and Cho (41) on charges of violating the Capital Markets Act and the Act on the Regulation of Concealment of Criminal Proceeds. As members of Ra Deok-yeon's group accused of stock price manipulation in the 'SG Securities-triggered stock price crash incident,' Park was in charge of stock trading for price manipulation, Jang oversaw finance and management of criminal proceeds, and Cho managed investment attraction and client relations.

According to the prosecution, in collusion with CEO Ra, from May 2019 to last April, they manipulated the stock prices of eight listed companies including Dow Data and Samchully through matched trading using several hundred billion won of investment funds raised from investors under profit agreements, earning approximately 730.5 billion won in illicit gains.

Additionally, from January 2019 to last April, they are accused of recruiting discretionary investment clients without registering as financial investment businesses, managing CFD accounts under clients' names on a consignment basis, investing in listed stocks, and settling profits, thereby earning about 194.4 billion won in illicit gains.

Furthermore, from April 2020 to last April, they are charged with concealing and laundering approximately 194.4 billion won of criminal proceeds obtained as fees from price manipulation and unregistered discretionary investment management by disguising them as sales revenue of corporations or restaurants managed by Ra Deok-yeon's group or receiving them through nominee accounts.

Earlier, on the 26th of last month, the prosecution had arrested and indicted CEO Ra, his close aide Byun Mo (40), and former professional golfer Ahn Mo (33) on the same charges as the three newly indicted individuals. The first trial for these defendants was scheduled for the 15th but has been postponed to the 29th.

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