'Stock Price Manipulation' 71.8 Billion Tax Evasion... Additional Indictment of 'Ra Deok-yeon Trio'

Market Manipulation and Profit Concealment... Tax Evasion as Well
"Income Hidden Through Shell Corporations, Totaling Approximately 71.8 Billion Won"

La Deok-yeon, the head of an investment consulting firm and a key figure in the SG (Soci?t? G?n?rale) Securities stock crash incident who was prosecuted, along with a group involved in stock price manipulation, has been additionally indicted on charges of evading a large amount of taxes.

The Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Ha Dong-woo) announced on the 8th that La and two of his associates, Byeon Mo and Ahn Mo, who recruited investors, were prosecuted for violating the Act on the Aggravated Punishment of Specific Crimes (tax evasion). According to the prosecution, over a period of more than three years, they were charged with evading income tax and value-added tax amounting to approximately 71.8 billion KRW by concealing income through shell corporations while manipulating stock prices.

'SG-triggered Plunge' CEO Ra Deok-yeon Appearing for Warrant Hearing
Photo by Yonhap News

In the previous investigation, it was revealed that the trio, including La, concealed criminal proceeds by using nominal shell corporations, cash and nominee accounts, and art sales clients during the process of receiving discretionary investment fees and profit settlements from investors. In the course of this, it was additionally discovered that they evaded taxes.

The group also faces charges under the Tax Offenses Punishment Act for failing to withhold taxes on approximately 3 billion KRW related to business expenses and interest payments for investor recruitment, despite operating an unregistered discretionary investment business.

Regarding the so-called 'SG Securities stock crash incident' that occurred on April 24, the Seoul Southern District Prosecutors' Office previously indicted 15 related individuals, including the three leaders of the stock manipulation, in May on charges such as violations of the Capital Markets Act. The first trial is currently underway. According to the prosecution, from May 2019 to April this year, they engaged in prearranged trading by setting predetermined buy and sell prices to manipulate the stock prices of eight listed companies, earning approximately 730.5 billion KRW in illicit profits. From January 2019 to April this year, they also received discretionary investment fees amounting to about 194.4 billion KRW without registering with financial authorities, and disguised the same amount of fees as sales revenue of multiple corporations, thereby concealing profits through 'money laundering.'

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