After Recommending Stock Purchase, Analyst's Warrant 'Dismissed' Following Sale...

A securities firm analyst (researcher) accused of making unfair profits by boosting stock prices through reports recommending stocks they held and then selling the shares avoided detention.

On the 11th, Judge Kim Ji-suk, in charge of warrants at the Seoul Southern District Court, conducted a pre-arrest interrogation (warrant hearing) for former securities firm analyst A, who is charged with violating the Capital Markets Act, and dismissed the arrest warrant, stating, "Although the charges are serious, based on the principle of non-custodial investigation and the evidence and investigation progress collected so far, it is difficult to consider there is a risk of flight or evidence tampering."

The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (acting chief prosecutor Chae Hee-man) applied charges including fraudulent unfair trading and use of undisclosed insider information under the Capital Markets Act and requested an arrest warrant.

A is accused of making unfair profits of 520 million won by publishing reports containing 'buy recommendations' for stocks purchased in advance from 2013 until last year, then selling the stocks after their prices rose.

The prosecution has identified that A committed similar offenses over a long period by buying and selling 22 stocks over approximately 10 years.

A is also charged with using securities accounts and mobile phones registered under other people's names to conduct transactions, violating the Electronic Financial Transactions Act and the Telecommunications Business Act.

During the period of the offenses, A worked at three securities firms and was selected as the 'Best Analyst' in his field.

He continued writing reports until early this year but resigned in March after the financial authorities began their investigation. Earlier, the Capital Markets Special Judicial Police (Special Judicial Police) of the Financial Supervisory Service detected signs of A's unfair trading, investigated, and referred the case to the prosecution with a recommendation for indictment at the end of last month.

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