[Infostock Daily=Reporter Lee Ji-sun] Prosecutors investigating the 'lime asset management scandal' that caused property damage worth 1.6 trillion won have handed over Daishin Securities Co. and Shinhan Financial Investment Corp., major sellers of the Lime Fund, to trial.
The Criminal Affairs Department 6 (Senior Prosecutor Kim Rak-hyun) at the Seoul Southern District Prosecutors' Office indicted Daishin Securities Co. and Shinhan Investment Corp. on the 22nd under the Capital Markets and Financial Investment Business Act on joint punishment of fraudulent transactions and illegal solicitation.
The Capital Markets Act stipulates that if an employee of a corporation commits illegal acts, such as fraudulent transactions, in connection with an individual's business, not only the actor will be punished, but the corporation will also be fined under the relevant clause.
Daishin Securities is suspected of neglecting its duty to pay attention to and supervise the fund, even though Jang, former head of the Banpo WM Center, subscribed 470 investors to 17 funds (about 200 billion won in total investment) by falsely explaining important matters of the fund, such as returns and risks.
Shinhan Financial Investment was also indicted on charges of paying attention to and neglecting the incomplete sale of funds by Lim, former head of Shinhan Financial Investment's PBS division.
The former head of the center Jang and former head of the headquarters Lim were previously indicted on charges of violating the Capital Markets Act and sentenced to two and eight years in prison in the first trial, respectively, and an appeal is underway.
This is the first time that the corporation, a seller, has been indicted for criminal responsibility in connection with the fund's fraudulent transactions and incomplete sales cases.
Reporter Lee Ji-sun email@example.com