Prosecutors detected allegations that a Daishin Securities executive and a price rigging ring colluded to manipulate a stock price and launched a compulsory investigation.
According to prosecutors on the 24th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office has been conducting a raid and seizure since the morning on the Daishin Securities headquarters in Jung District and other locations.
A, a Director General-level employee who worked at a Daishin Securities branch in Gyeonggi Province, is reportedly suspected of colluding with a price rigging ring early last year to take part in price rigging of KOSDAQ-listed company B. A's illicit gains are estimated to be in the billions of won.
After conducting an internal audit in June last year, Daishin Securities filed a complaint with the Namdaemun Police Station in Seoul in August against A on charges of violating the Financial Investment Services and Capital Markets Act, the Real Name Financial Transactions Act, and the Electronic Financial Transactions Act. A received heavy internal disciplinary action and resigned late last year.
A Daishin Securities official said, "We are responding with a zero-tolerance principle to illegal acts and are faithfully cooperating with related authorities' investigations."