Kim Jae-hyeon, former head of Optimus Asset Management, who was additionally indicted on charges of using 9.2 billion won in Optimus fund redemption money for a "ponzi-style rollover," was acquitted by the Supreme Court. A Hana Bank employee accused of aiding and abetting by actually carrying out the "rollover" was also finally acquitted.
The Supreme Court's Second Division (Presiding Justice Park Young-jae) said on the 16th that it affirmed the lower court's acquittal of Kim, who was indicted on charges of violating the Financial Investment Services and Capital Markets Act on the 4th of the month. It also affirmed the lower court's acquittal of Hana Bank employee A and the Hana Bank corporation, who were tried alongside Kim on charges including aiding and abetting a violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).
Kim was indicted on charges that in 2018, when Optimus failed to pay fund redemption money on time, Kim carried out a "rollover" three times using personal funds and Optimus company funds.
Employee A used 9.2 billion won from another Optimus fund to carry out a "rollover" for a fund short of redemption money. After that, A filled the gap with funds from Kim and the Optimus corporation. Under the Financial Investment Services and Capital Markets Act, a trustee may not engage in lending between fund assets and must manage them separately.
The first trial acquitted Kim, the Hana Bank corporation, and employee A. The first trial court said, "The mere fact that Hana Bank operated an integrated fund management system cannot be deemed a violation of the separate management duty under the Financial Investment Services and Capital Markets Act." On transactions between funds, it also found that "it is hard to view them as transactions between funds because there was no effect on the actual change in rights and obligations."
Prosecutors appealed, but the appellate court reached the same conclusion. The appellate court said, "It is difficult to find that Hana Bank, as a trust business operator, violated the separate management duty."
The Supreme Court dismissed the appeal, finding no error in the lower court's understanding of the law.
Separately from this case, the former head Kim is serving a confirmed sentence of 40 years in prison and a fine of 500 million won from the Supreme Court for causing a suspension of redemptions in the Optimus funds worth about 1 trillion won.