Protagonist of "The Scam" Leads Market Manipulation Ring... Prosecutors Indict Nine Members

From Securities Firm Executive to Influencer's Wealthy Husband
Prosecutors: "Stock Price Manipulation of Listed Company Yielded 1.4 Billion Won in Illicit Gains"

Nine individuals involved in stock price manipulation—including a self-proclaimed protagonist of the movie "The Scam," a current executive at a securities firm, a wealthy individual known as the husband of a famous influencer, and a former soccer player—have been indicted. Prosecutors believe this group illegally gained as much as 1.4 billion won through market manipulation of a KOSDAQ-listed company.

The Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office announced on the 8th that it had detained and indicted three key figures—market manipulation expert A, who claims to be the protagonist of "The Scam," current securities firm manager B, and wealthy individual C—on charges of violating the Capital Markets Act. In addition, six accomplices, including financial backers and so-called “players” who participated in the manipulation scheme, have been indicted without detention or through summary proceedings.

Seoul Yangcheon District Seoul Southern District Prosecutors' Office. Photo by Jiye Lee

A and his associates were charged with placing market manipulation orders using methods such as collusive trading and wash trades between January and April last year. They allegedly bought and sold more than 20 billion won worth of shares, earning at least 1.4 billion won in illicit gains.

According to the prosecution's investigation, market manipulation expert A recruited securities firm manager B as a “player” and, while planning the operation targeting a KOSDAQ-listed company, met with wealthy individual C, financier D, and player E. They selected the target company based on the judgment that companies with a high controlling shareholder ratio—where only about one-third of shares are traded in the market—and with low unit prices and trading volumes, are more favorable for price manipulation.

Subsequently, C and D delivered approximately 3 billion won in cash, borrowed-name accounts, and burner phones to the office of the securities firm where B worked. The accomplices who received these tools then began the manipulation operation in earnest. A and his team raised the stock price from the 1,900-won range to over 7,000 won and disposed of the shares purchased under borrowed names. It was agreed that the market manipulation team consisting of A and B, and C's “family,” would split the profits 50-50.

During this process, A used borrowed-name accounts and burner phones to place various manipulation orders with C's “family” players and led the stock price manipulation scheme. C’s group not only supplied funds and tools for the crime, but also used their personal networks to spread false positive news (“putting on gloss”). When the stock price fell due to betrayal by some accomplices, they reportedly recruited a former soccer player as an additional “player” for the manipulation scheme.

This case is also connected to allegations of investigation interference at Seoul Gangnam Police Station. A prosecution official stated, “We have detected that C contacted current police officers at Gangnam Police Station, offering bribes in exchange for favors related to criminal cases involving their accomplices and family members,” adding, “Among them, C, who admitted to the charges, was indicted this time.”

Prosecutors further emphasized that after raiding the headquarters of the securities firm where B worked in February this year, they uncovered the full details of the market manipulation scheme within three months. This case also marks the first investigation into market manipulation triggered by a voluntary confession since the introduction of leniency (self-reporting penalty reduction) in January 2024.

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