"If You Serve Time for Us, We'll Pay Billions"... Prosecution Indicts Stock Price Manipulation Ring

Embezzling 4 Billion Won Through Stock Price Manipulation of a KOSDAQ-Listed Company

In connection with the stock price manipulation case involving a KOSDAQ-listed company, a group of accomplices who orchestrated the crime from behind the scenes and helped the "figurehead CEO" escape overseas have been indicted en masse.

On April 15, the Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (headed by Chief Prosecutor Kim Taegyeom) announced that it had indicted five individuals, including Mr. A, without detention on charges of violating the Capital Markets Act and abetting a fugitive. In addition, Mr. B, who helped the figurehead CEO, Mr. C, who had previously been indicted and detained, escape overseas, was also indicted without detention for aiding a fugitive.

Seoul Southern District Prosecutors' Office. Yonhap News.

According to prosecutors, between 2018 and 2019, Mr. A and others were accused of using more than 100 borrowed-name accounts at an office in Gangnam District, Seoul, to manipulate the market price of Fortis through high-priced purchases and simulated trades. Through these actions, they allegedly gained illicit profits totaling approximately 4 billion won.

During the first round of price manipulation between August and November 2018, they pocketed these illicit profits. However, from November 2018 to February 2019, during the second round of manipulations, the stock price fell, and it was found that they ultimately incurred losses.

Prosecutors believe that from the outset, the scheme was designed so that Mr. C, acting as the figurehead CEO, would take responsibility for the crime. Mr. A and others reportedly agreed to compensate Mr. C 100 million to 200 million won for each year of imprisonment if prosecuted, and used accounts in Mr. C’s name as the main accounts for the transactions. After the financial authorities began their investigation in the second half of 2019, Mr. A and others helped Mr. C flee to Vietnam and provided financial support for five years to facilitate his escape, thereby obstructing the investigation.

Meanwhile, Fortis was listed on KOSDAQ in 2013 but was delisted in January 2024. The company’s current name is DSNL. Previously, the prosecution apprehended Mr. C, who had fled overseas, through an Interpol red notice, and indicted him last year while in detention.

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