Published : Nov. 2, 2018 - 16:04
Former Bota Bio executive and husband of veteran actress Kyun Mi-ri was sentenced to four years in prison for manipulating stocks and raking in billions in illicit gains.
Judge Sim Hyeong-sup of the Seoul Southern District Court handed down a four-year sentence and a fine of 2.5 billion won ($2.2 million) for the convict, identified only by the surname Lee, for violating laws related to capital markets and financial investment. Lee was found guilty of gaining approximately 2.3 billion won through stock manipulation between November 2014 and February 2016.
(Yonhap)
To attract investment, Lee falsified information about his company’s financial soundness, leading investors to believe it was improving based on recapitalization from his wife and an influx of Chinese capital.
A securities broadcaster surnamed Kim helped Lee by spreading misinformation and recommending that people purchase Bota Bio stocks.
When the news spread that actress Kyun Mi-ri was participating in the recapitalization, the value of Bota Bio’s stock skyrocketed to 15,100 won per share in just five months, from only 2,000 won in Nov. 2014.
The court said “Lee played a central role in planning and executing the crime by using his wife Kyun Mi-ri’s name to attract investors, when she was not involved in any of the investments.”
A fellow Bota Bio executive surnamed Kim received a three-year prison sentence and a fine of 1.2 billion won for assisting Lee. Kim the securities broadcaster received a two-year prison sentence, suspended for three years.
By Lee Tae-hee (taeheelee@heraldcorp.com)