Two Executives of Optimus Affiliates Detained... One Dismissed

by Cho Seongpill

Published 13 Nov.2020 06:43(KST)

Regarding the Optimus Asset Management fund fraud, former Haeduk Powerway CEO Park Mo, Sebotech General Director Kang Mo, and M Company Chairman Oh Mo [Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] Former CEO of Haeduck Powerway and other executives of affiliated companies involved in the Optimus Residual Fund fraud have been arrested.

Choi Chang-hoon, the warrant judge at the Seoul Central District Court, issued arrest warrants late on the afternoon of the 12th for two individuals, including former CEO Park of Haeduck Powerway, a KOSDAQ-listed company accused of embezzlement, and Chairman Oh of an affiliated company. Judge Choi stated, "There is sufficient evidence to support the charges, and the illegality of the acts and their consequences is serious. Given the conflicting interests and the fact that the company cannot return to its original state even if the damages are compensated afterward, the reasons and necessity for detention are recognized."

However, the arrest warrant for Kang, the general director of Haeduck Powerway’s subsidiary Sebo Tech, who was also requested for detention, was dismissed. The judge explained, "Considering the suspect’s statements and his command and role in the accomplice relationship, it is difficult to recognize a risk of flight or evidence destruction."

Former CEO Park is suspected of borrowing 13.3 billion KRW in loans secured by deposits under Haeduck Powerway’s name in May and handing the funds over to Kim Jaehyun, CEO of Optimus, as well as embezzling funds from the paid-in capital increase of Hwaseong Industry, the largest shareholder of Haeduck Powerway. General Director Kang and Chairman Oh are suspected of misappropriating Sebo Tech’s funds to acquire shares of company M owned by Chairman Oh.

The prosecution plans to continue the investigation, including verifying whether additional crimes were committed by these individuals.