“CEO of H Investment Advisory, Ra Deok-yeon, Arrested in Connection with SG Securities Stock Price Crash”

On the 11th, Deok-yeon Ra, CEO of H Investment Advisory, who was identified as the key figure in the stock price crash caused by Societe General (SG) Securities, was arrested.

Deputy Judge Yu Hwan-woo, who is in charge of warrants at the Seoul Southern District Court, issued an arrest warrant after interrogating the suspect before arrest (examination of warrant validity) for CEO Ra, who is suspected of violating the Capital Markets Act and the Concealment of Criminal Proceeds Control Act. Chief Judge Yu revealed the reason for the issuance, saying, “There are concerns about escape and destruction of evidence.”

Representative Ra, who had previously attended wearing a black mask and a blue suit, remained silent when asked by the reporters, “Do you admit the charges?” and “Do you have anything to say to investors?”

Ra is suspected of manipulating the market price through unregulated transactions in which stock prices are raised by buying and selling stocks using the cell phone under the investor’s name.

In addition, charges were raised of recruiting investors and defrauding investment profits and commissions while operating an unreported pseudo-investment advisory company.

Previously, on the 9th, the Seoul Southern District Prosecutor’s Office’s Joint Investigation Team for Financial Securities Crimes arrested Mr. Byun, who oversaw the investment advisory company, including CEO Ra, and Mr. Ahn, a former professional golfer who recruited large investors. The warrant review for Mr. Byun and Mr. Ahn will be held on the morning of the 12th at the Seoul Southern District Court.

The crash caused by SG Securities came to light on the 24th of last month when stock prices of eight stocks, including Daou Data, Harim Holdings, Daol Investment & Securities, Daesung Holdings, Sunkwang, Samchully, Seoul Gas, and Sebang, suddenly plummeted.

It was found that about 8.2 trillion won in market capitalization of 8 stocks evaporated due to the four-day collapse until the 27th of the same month.