A person surnamed Lee, indicted as an accomplice in the Deutsch Motors stock manipulation case linked to first lady Kim Keon-hee, was sentenced in the first trial to a suspended prison term and a fine. Lee, who has stood trial in custody, is expected to be released.
The Seoul Central District Court Criminal Agreement Division 34 (presiding judge Han Sung-jin) on the 25th sentenced Lee, indicted on charges of violating the Financial Investment Services and Capital Markets Act, to 10 months in prison suspended for two years and a fine of 40 million won.
The court found that Lee conspired in the stock manipulation by former Deutsch Motors Chairman Kwon Oh-soo and others. It appears the court reflected in sentencing that Lee, while aware that the so-called second round of stock manipulation was underway, played a not insignificant role in price rigging and had two prior convictions for similar crimes.
From Oct. 2010 to Dec. 2012, Lee was indicted and detained last Dec. by the special counsel investigating Kim Keon-hee on charges of conspiring with former Chairman Kwon and former Black Pearl Invest CEO Lee Jong-ho to manipulate Deutsch Motors' stock price and pocketing an illicit gain of 13 million won.
At the sentencing hearing on the 24th of last month, the special counsel asked the court to sentence Lee to one year and six months in prison and a fine of 40 million won. The prosecution also sought the forfeiture of a little over 13 million won.
The special counsel also believes the first lady colluded with the stock manipulation ring to gain a profit of 810 million won and that Lee was involved in the process. However, on Jan. 28, the first lady was acquitted at first instance of violating the Financial Investment Services and Capital Markets Act. At the time, the court found the evidence insufficient to prove a conspiracy between the first lady and the stock manipulation ring.
The case has been assigned on appeal to the Seoul High Court Criminal Division 15-2 (high court judges Shin Jong-oh, Sung Eon-joo and Won Ik-seon) after both the first lady and the special counsel appealed. The first hearing opens this afternoon.