Seoul: The head of an investment consulting firm was sentenced to 25 years in prison on Thursday over a massive stock manipulation scheme that rocked local financial markets. The Seoul Southern District Court handed down the sentence, ordering Ra Deok-yeon, the head of the unregistered firm, to pay a fine of 146.5 billion won (US$101 million) and a forfeit of 194.4 billion won.
According to Yonhap News Agency, Ra was indicted on charges of pocketing 737.7 billion won from 2019 to 2023 by selling off the stocks of eight listed companies after artificially inflating their prices. The court found that Ra, along with his accomplices, manipulated the market to their advantage, causing significant disruption.
Two of Ra’s accomplices, identified by their last names Byun and An, were also sentenced to prison terms of six years and 3 1/2 years, respectively. The court emphasized the extensive scale of the manipulation, noting that multiple innocent investors suffered irrecoverable losses due to the scheme.
In delivering the ruling, the court stated that Ra denies the charges and shows no remorse, despite having orchestrated and led the criminal activities. The case highlights significant vulnerabilities in the financial markets and the severe consequences of stock manipulation.