SEOUL, Prosecutors raided the Seoul branch of Goldman Sachs Group Inc. on Friday as part of their investigation into Samsung BioLogics Co.'s accounting fraud allegations.
The Seoul Central District Prosecutors' Office sent investigators to the offices of Goldman Sachs and Credit Suisse in Seoul to secure documents related to the attempt to list Samsung BioLogics' biosimilar-making subsidiary, Samsung Bioepis Co., on the Nasdaq in 2015.
Samsung BioLogics is suspected of breaking accounting rules in inflating the value of Samsung Bioepis ahead of BioLogics' initial public offering in 2016.
Goldman Sachs was a lead manager in the Bioepis' listing plan, though the plan was scrapped in the middle. Credit Suisse also took part in the process.
After its own inquiry, South Korea's financial watchdog, the Financial Services Commission, concluded that the alleged fraudulent accounting possibly amounted to 4.5 trillion won (US$3.96 billion).
Civic groups claim that the alleged fraud was aimed at enhancing heir apparent Lee Jae-yong's control of the country's largest business group, Samsung.
Source: Yonhap news Agency