Three More Members of Ra Deok-yeon Gang Arrested for Stock Manipulation Charges... "Risk of Escape"

Court Rejects Arrest Warrant for Employee Embezzling 1 Billion Won
"Difficult to See Risk of Fleeing or Evidence Tampering Due to Stable Residence"

Three additional members of the group led by Ra Deok-yeon, who is accused of stock price manipulation related to the Soci?t? G?n?rale (SG) Securities stock price crash incident, have been arrested. However, an employee of Ra's company, who is also facing embezzlement charges along with stock price manipulation, avoided detention.

On the 17th, Judge Kim Ji-suk, in charge of warrants at the Seoul Southern District Court, issued arrest warrants for Kim (45), the head of the customer management team, and Na (37), the deputy manager, both employees of the investment advisory firm Hoan, where Ra was the CEO, citing "concerns of evidence destruction and flight risk."

[Image source=Yonhap News]

Additionally, Judge Yoo Hwan-woo, also in charge of warrants, issued an arrest warrant for Kim (37), the head of the stock trading team, citing "flight risk," while dismissing the warrant for employee Heo (28).

Judge Yoo explained regarding Heo, whose warrant was dismissed, that "since Heo has a fixed residence, most evidence has been collected, and considering the progress of the investigation and Heo's attitude towards the investigation, it is difficult to see any risk of evidence destruction or flight."

They are accused of participating in Ra's stock price manipulation scheme, manipulating stock prices, and concealing criminal proceeds (violations of the Capital Markets Act and the Act on the Regulation and Punishment of Criminal Proceeds Concealment). Heo, whose warrant was dismissed, faces additional embezzlement charges under the Act on the Aggravated Punishment of Specific Economic Crimes. He is suspected of embezzling 1 billion KRW of company funds from Hoan after participating in stock trading, profit settlement, and management, and when the stock prices of eight listed companies crashed in April.

Following the crash incident, the prosecution launched an investigation and has so far indicted a total of eight people, including the ringleader Ra and his associates, on charges of violating the Capital Markets Act and the Act on the Regulation and Punishment of Criminal Proceeds Concealment. Ra's group is accused of artificially inflating the stock prices of eight listed companies through prearranged trading by setting predetermined buy and sell prices from May 2019 to last April, earning approximately 730.5 billion KRW in illicit profits.

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