Stock market unfair trading (PG)▶ Click here for a larger view
A former brokerage analyst (research center head) who made unfair gains of hundreds of millions of won by buying stocks in advance and taking profits before issuing a corporate analysis report was sentenced to imprisonment in the first trial.
According to the court on the 5th, the 13th Criminal Division of the Seoul Southern District Court (Deputy Judge Lee Sang-ju) was sentenced to two years in prison and a fine of 500 million won to DS Investment Securities former head of research center A, who was charged with violating the laws on the capital market and financial investment business. Sentenced.
The court said, “The defendant seriously undermined the public values of fairness, reliability, and efficiency in the capital market by actively taking advantage of the position of the research center chief who can influence the investor’s investment judgment.” Explained.
“The defendant seems to have personally consumed most of the market gains gained through the crime of this case,” he said. “The day before the seizure and search by the investigative agency, I tried to actively hide the crime by replacing the mobile phone with a rental used phone.” Pointed out.
Mr. A informs his acquaintance B of the items listed in the company research and analysis data (purchase recommendation) that he prepares to buy, and then publishes the analysis data and sells it when the stock price rises. He was indicted on charges of taking 10 million won worth of market profits. After the incident, Mr. A submitted his resignation to the company.
Mr. B, who was accused of buying and selling stocks under the direction of Mr. A, was sentenced to 1 year and 6 months in prison, 3 years probation, and a fine of 200 million won. Mr. B joined a securities company on the recommendation of Mr. A and left after working as a professional investment advisor.
Financial Supervisory Service (CG)▶ Click here for a larger view
The Financial Supervisory Service’s Capital Market Special Judicial Police (special envoy) confiscated and searched Mr. A’s home and DS investment securities in June of last year to obtain relevant data, and then applied for a warrant of arrest and was issued in October of the same year. It was the first case that the FSS envoy was issued a warrant and directly secured the suspected recruits.
After receiving the case from the special envoy, the Seoul Southern District Prosecutor’s Office went through a reinforcement investigation and indicted Mr. A and others for violating the Capital Market Act.
The FSS was launched last year, and is an organization that investigates unfair trade practices in the capital market, such as manipulating market prices, manipulating stock prices, and using undisclosed information. It is composed of employees of the Financial Supervisory Service, and can investigate the case where the chairman of the Securities and Futures Commission transferred to the prosecution as an emergency measure under the direction of prosecutors.
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