All Members of 'SG-Triggered Stock Manipulation' Ring Found Guilty in First Trial

All members of the trading team who participated in the stock price manipulation scheme led by Ra Deokyeon, CEO of Hoan Investment Advisory, following his instructions in the Societe Generale (SG) Securities-triggered stock manipulation case, have been found guilty in the first trial.

Yonhap News Agency

On October 30, the 11th Criminal Division of the Seoul Southern District Court (Presiding Judge Jang Chak) sentenced Baek and eight others, who were indicted on charges including violations of the Capital Markets Act, to two years in prison, suspended for three years. The court also ordered 160 hours of community service and suspended a fine of 30 million won. For Kim and ten others indicted on the same charges, the court sentenced them to one year and six months in prison, suspended for two years, along with 120 hours of community service and a suspended fine of 20 million won. For the remaining four defendants, the court imposed suspended prison sentences or fines, depending on the degree of their involvement in the crime.

The court explained, "This case is known as the largest stock price manipulation incident in the domestic securities market and has shocked the market. Manipulating stock prices, which should be freely determined by supply and demand, disrupted fair price formation and disturbed the capital market." However, the court added, "The defendants appear to be lower-level members who were mobilized to mechanically trade the stocks involved in this case under instructions from above. The court also took into account that the defendants themselves incurred significant debt through leveraged investments and that most of them are first-time offenders."

For some defendants who denied the charges, claiming they were unaware they were participating in stock manipulation, the court determined that they had at least conditional intent. This judgment was based on factors such as working in an office without a signboard, engaging in mobile trading to evade financial authorities' surveillance, and being paid in cash.

From 2019 to 2023, they are accused of recruiting 917 investors, manipulating the prices of eight listed companies, and making illicit gains exceeding 700 billion won. Under Ra's leadership, the group divided their work into sales management, trading, settlement, and corporate management teams to systematically carry out the crimes.

Ra, the central figure in this case, was sentenced in the first trial this past February to 25 years in prison and fined 146.51 billion won, with an additional forfeiture of 194.48675 billion won.

This case is currently in the appeals process at the Seoul High Court, as Ra and the other defendants have appealed the first trial's verdict.

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