Prosecution Indicts Three Employees of La Deok-yeon’s Company in 'SG Incident'

The prosecution investigating the 'SG Securities-induced stock price crash incident' has arrested and indicted three employees on charges of participating in stock price manipulation while working under CEO Ra Deok-yeon Hoan (42).

[Image source=Yonhap News]

On the 26th, the Joint Investigation Unit for Financial and Securities Crimes at the Seoul Southern District Prosecutors' Office (Chief Prosecutor Dan Seong-han) announced that it had arrested and indicted Kim (45), head of Hoan's Customer Management Team, Na (37), deputy head of the Customer Management Team, and Kim (37), head of the Stock Trading Team, on charges of violating the Capital Markets Act and the Act on the Regulation of Concealment of Criminal Proceeds.

They are accused of working at CEO Ra's corporation and manipulating stock prices and concealing criminal proceeds together with CEO Ra. According to the prosecution, Customer Management Team head Kim managed VIP clients, Na was responsible for stock trading and investment management, and Stock Trading Team head Kim handled stock trading and corporate account management. All were detained on the 17th.

The prosecution is conducting supplementary investigations on another employee of the Stock Trading Team, Heo (28). Heo is suspected of embezzling about 1 billion KRW of corporate funds following the 'SG Securities-induced stock price crash incident.' The prosecution also requested an arrest warrant for Heo, but the court dismissed it on the 17th, citing "no risk of evidence destruction or flight."

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