‘221.5 Billion Won Embezzlement’ Former Team Leader of Osstem Implant Sentenced to 35 Years in Prison in Second Trial

Suspended Sentence in First Trial: Sister-in-law and Younger Sibling Also Sentenced to Prison

Lee Mo (47), former head of the finance management team at Osstem Implant, who was prosecuted for embezzling 221.5 billion won of company funds, was sentenced to a heavy prison term again in the appellate court.

Osstem Implant. [Image source=Yonhap News]

The Criminal Division 4-3 of the Seoul High Court (Presiding Judges Kim Bok-hyung, Jang Seok-jo, Bae Gwang-guk) on the 10th sentenced Lee, who was charged with violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement) and the Act on the Regulation and Punishment of Criminal Proceeds Concealment, to 35 years in prison, the same as the first trial. However, the court reduced the confiscation order from about 115.1 billion won ordered in the first trial to about 91.7 billion won.

The court stated that the first trial's judgment appeared to have been made within a reasonable scope, adding, "Although it is acknowledged that a settlement agreement regarding the company and victim recovery was made during this appeal, it cannot be considered a change in circumstances that requires a new sentence."

Regarding the reduction in the confiscation amount, the court explained, "Even if the victims of the crime have not realistically recovered the damaged property, if they have secured specific rights to recover it, it cannot be considered a case where recovery is extremely difficult, so that part was excluded from the confiscation amount."

Lee is accused of transferring 221.5 billion won of company funds to his personal accounts 15 times from November 2020 to October 2021, then using the money for stock investments or converting it into gold bars to conceal it. It was found that the real estate and resort memberships purchased under his and his family members' names with the embezzled money exceed 10 billion won, and the value of the concealed gold bars is close to 70 billion won.

The first trial court sentenced Lee to 35 years in prison, stating, "There are signs that the defendant secured assets even at the risk of punishment after the incident or calculated to enjoy benefits by utilizing the assets after release, and the sentence was intended to prevent the enjoyment of criminal proceeds after release."

Lee's wife, Park, who was also prosecuted for concealing criminal proceeds, was sentenced to 3 years in prison, the same as in the first trial. Lee's younger sister and Park's younger sister, who faced the same charges, were sentenced to 2 years in prison with a 3-year probation in the first trial, but the appellate court considered the first trial's judgment too lenient and sentenced them to 1 year and 6 months and 2 years in prison, respectively.

Osstem Implant was delisted on August 14 last year. It was 16 years since it was listed on the KOSDAQ market in February 2007. Since then, the company has been acquired by a consortium of private equity funds MBK Partners and Unison Capital Korea (UCK).

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