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| ▲ Ra Deok-yeon, a key suspect in a large-scale stock manipulation case, speaks in an interview with Yonhap News TV in Seoul, in this file photo taken May 1, 2023. (PHOTO NOT FOR SALE) (Yonhap) |
stock manipulation-arrest warrant
Arrest warrant sought for investment firm head over suspected stock manipulation
SEOUL, May 11 (Yonhap) -- Prosecutors have sought an arrest warrant for the head of an investment consulting firm accused of large-scale stock manipulation that rocked the local financial markets, officials said Thursday.
The Seoul Southern District Prosecutors Office and financial authorities jointly investigating the case filed for the warrant Wednesday night for Ra Deok-yeon, head of an unregistered investment consulting firm.
Ra's firm was at the center of the recent collapse of stock prices of nine companies, including energy firm Samchully Co. and Seoul City Gas Co.
The stocks of the nine listed companies had steadily risen for years before nose-diving late last month following mass sell-offs through SG Securities Korea Co., the local branch of the Societe Generale Group of France.
About 1,000 investors are said to have suffered a huge loss estimated to be between 800 billion won (US$606 million) and 1 trillion won.
The 42-year-old Ra is suspected of having manipulated the prices of the stocks through an "order matching" technique after taking over mobile phones and personal information from investors.
Ra is also accused of concealing part of the investment proceeds and evading taxes through his business entities, and running an unregistered investment consulting business.
A court is expected to hold a hearing Thursday to decide whether to grant the arrest warrant.
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