On July 10, 2020, victims of the suspension of Lime Asset Management Fund repurchases are holding a press conference in front of the headquarters of Shinhan Bank in Jung-gu, Seoul. yunhap news
“The Minister of Justice Choo Mi-ae disbanded the joint securities crime investigation team and ruined the investigation of the’stop repurchase of lime asset management funds.’”
Attorney Kim Jeong-cheol (Woori Law Firm), who represents the victim of the Lyme incident, said in an interview with the JoongAng Ilbo on the 12th. It is pointed out that as a result of the abolition of the means installed in the Seoul Southern District Prosecutors’ Office in January of last year, “we will reform the prosecution,” the prosecution’s power to investigate securities crimes has fallen significantly, and the Lime investigation is also slow.
Interview with lawyer Kim Jung-cheol on the side of Lime victims
“Expertise in investigating securities crimes declined due to the dissolution of synthetic means”
“It’s like playing soccer in a basketball game?
“Yun Seok-yeol’s deprivation of the right to investigate is also an obstacle to Lime investigation”
(January 11, 2021 JoongAng Ilbo Online 『[단독]In the end, autumn was wrong, and let’s get rid of the stock exchange means 3 out of 58 prosecutions.)
According to lawyer Kim, the Lime case is largely divided into four. Fraud or incomplete sales are typical in the process of recruiting investment funds for securities companies. The second is’fund return’, which takes over bad assets with funds from other funds to prevent the failure of a particular fund. Major suspicions include embezzlement and stock price manipulation of listed companies that received Lime Asset Management funds. In order to commit such a crime, the politics and relations lobby committed by’insurance’ is also a branch of the Lime case.
Attorney Kim evaluated, “Even though a year and a half have passed since the first related suspicions were raised in July 2019, all four investigations have only progressed little by little.”
Attorney Kim Jeong-cheol (Woori Law Firm). Central photo
“Synthesis is broken, and professional prosecutors are scattered”
Hapsudan was a collaborative institution such as the Prosecutors’ Office, the Financial Supervisory Service, the Korea Exchange, and the Korea Deposit Insurance Corporation, so it was able to secure expertise in finance. With the disappearance of these means, lawyer Kim criticized that the expertise and speed of securities crime investigations fell significantly.
He said, “As prosecutors with professional competency are scattered by the Southern District Prosecutors’ Office and the Seoul Central District Prosecutors’ Office, intensive investigation has become impossible.”
Then I made this analogy. “When it comes to playing basketball, criminals choose the best basketball players and let the prosecution play soccer, gymnastics, and archery players as’the same athlete’. Even if there are 20 prosecutors the same, there is a huge difference in investigative ability between 20 prosecutors with expertise and 20 prosecutors who do not.”
Bong-Hyun Kim, former Chairman of Star Mobility. yunhap news
“Payment to follow issues after dissolution of the Ministry of Trade and Industry”
Attorney Kim pointed out that the prosecution is in a hurry to follow the matters mentioned in the media as the investigative capacity is insufficient. Attorney Kim said, “For example, employees of sales companies, such as securities companies, who were involved in the Lime case were prosecuted and sentenced, but investigations on corporations that should be punished by punishment rules are not going on at all.”
Along with the dissolution of the lawsuit, the fact that Choo deprived Prosecutor General Yoon Seok-yeol of the investigation and command of the Lime case also acts as an obstacle to the investigation, Kim analyzed. He raised his voice, saying, “It is the letter that Minister Chu played with in prison letter from former Star Mobility chairman Kim Bong-hyun, one of the main culprit.”
Attorney Kim said, “The Lime case is a case that is attracting attention, so it is about this level, and other securities crimes are not being touched,” he said. “After all, good ant investors are taking the damage intact.”
In fact, according to the Supreme Prosecutors’ Office, the rate of handling cases (prosecution or non-prosecution) of violations of the Capital Market Act that the prosecutors transferred from the Financial Services Commission after the dissolution of the lawsuits fell sharply. In 2016, 81 cases were received and 77 cases were processed, and in 2017, 81 cases were received, and all were closed. Most of the cases were also completed in 2018 (76 cases were received and 63 cases were processed) and 2019 (56 cases were received and 33 cases were processed). However, in 2020, 58 cases were received, only 8 cases were processed. During the same period, the prosecution rate remained at the 70% level until last year, but was cut in half to 37.5% (three out of eight) last year.
January 12, Minister of Justice Choo Mi-ae. yunhap news
“We need to raise professional prosecutors and guarantee a job for five years”
Attorney Kim said, “We must come up with a plan as soon as possible to revive or develop expertise without means. Measures such as expansion of financial prosecutors and guaranteeing five-year positions so that they can develop their expertise are necessary. Do” he emphasized. He cited as an alternative to forming an external expert group related to securities crime and establishing a system to advise on investigation.
Reporter Minjoong Kim [email protected]