2017Gohap469 Violation of the Financial Investment Services and Capital Markets Act

A

High-ranking (prosecutions) and clinical (public trial)

Attorney B

September 6, 2017

A defendant shall be punished by imprisonment for one year.

However, the execution of the above punishment shall be suspended for two years from the date this judgment became final and conclusive.

Criminal facts

【Criminal Power】

On May 18, 2017, the Defendant was sentenced to five years of imprisonment with prison labor for a violation of the Act on the Control of Narcotics, Etc. at Seoul High Court on May 18, 201, and the judgment became final and conclusive on May 26, 2017.

【Criminal Facts】

1. The background and process of the crime;

C is a corporation which was established on July 1997 and listed on the KOSDAQ market on May 2003, and operates a CATV broadcasting business in the Chungcheong area.

From April 2009 to May 2012, D, the largest shareholder of C, after 2002, suffered a big loss by investing in the development project of a tourist complex in the Chungcheong regional tourism complex, etc., and around April 2009, D was subject to the transfer income tax of about 10 billion won in the process of exchanging with the shares of E and the shares held by F, and around April 2009, D was subject to the transfer income tax of about 10 billion won in the process of exchanging with the shares of the LAC. Based on the outside loan, most of the required funds was more than KRW 20 billion in the annual interest amount, and the annual interest amount was significantly aggravated in KRW 1.6 billion. Accordingly, D, in order to solve the financial shortage by selling the shares of the KAB to the high-value of the shares held by the KAB, D ordered the management manager G to operate the share price by explaining the market price of H, which is the shares B.

H, upon the request of such G, was in the process of questioning the market price pilot, by introducing J through G through G, and by explaining the reasons why the state support is necessary, G requested by J to artificially support the state C's share price.

As a condition for the market price control, J presented to G, “(i) 150 million won of Lone Star Fund, ② additional payment of KRW 150 million each time when the share price is raised to KRW 500,000, ③ 30% of the sale price at the time when the shares in possession are sold to 300,000 won, and G accepted this.

According to this agreement, G grants to J a total of KRW 750,00,000 and KRW 300,000,000 as security funds to be paid to a purchaser of shares, and the J has used the market price operation funds, etc. received from G to artificially support the CoCo CoCo Co., Ltd. and requested K to support the Co., Ltd. as security.

K has received 290,00 shares as security from J, and among them, 240,00 shares are delivered as security again to Defendant A, a stock supplier, to purchase shares in accordance with the collateral ratio, and in the process of purchase, to artificially support the Co., Ltd. in the process of purchase by submitting an order for stock price manipulation, such as high-priced purchase, etc., and to submit an order for high-priced purchase and other market prices to artificially support the Co., Ltd. Co., Ltd. by using its own borrowed name account, etc., which is one of the remaining 50,000 shares.

In addition, H introduced G and received KRW 40,00,000 from J in return for the participation in the market price operation. In addition, H received KRW 100,00,000 shares in the agreement to assist G to operate the market price, and it received KRW 100,00,00 shares in the agreement to purchase shares and as a security for stock purchase, and submitted an order to operate the market price, such as high-priced purchase, by directly using a borrowed-name M account, etc. as security, and submitted an order to operate the market price.

2. Forming a market price;

No one shall trade listed securities with an intention to attract anyone to trade such securities, or entrust or be entrusted with such trading.

Nevertheless, in collusion with D, J, G, K, and H as above, the Defendant, from February 7, 2012 to March 8, 2012, in the course of trading stocks listed in the Korea Exchange located in Yeongdeungpo-dong 33, Yeongdeungpo-gu Seoul Metropolitan Government, the Defendant submitted a total of 1,056 price manipulation orders, such as high-priced purchase orders 929 times, Si/Gun/Gu 21 times, 12 times, volume reduction orders, 94 times, etc., and submitted a total of 1,056 price manipulation orders, with an intention to attract the trading of listed stocks, and acquired the unfair profit equivalent to the amount of money in excess of the amount of money.

Summary of Evidence

1. Defendant's legal statement;

1. Each interrogation protocol of the prosecution against D, J, K, G, and H;

1. Each statement of N,O, and P;

1. One copy of the current status of stock transfer by date C (from January 3, 2011 to December 28, 201), one copy of the register of corporate register, one copy of the entry into and departure from stock, one copy of the investigation report (the details of orders by both types, such as suspect D, G, and J), one copy of the primary manipulation computation, one copy of the order for high-priced purchase (1), one copy of the order for high-priced purchase (1), one copy, one copy, and one copy of the order for ordered purchase (1), one copy, and one copy, market price control order (1), one copy, and one copy, and one copy of the order for ordered purchase (1), one copy, and one copy, one copy, and one copy, one copy, and one copy, one copy, and one copy, one (1), (1), and (2), and (1), and one copy, (2), and (1), and (2), and (2), and (1) of the order of ordered purchase of stocks by date;

(2) One copy, one copy of the purchase order (2j)

1. Previous conviction: Defendant’s legal statement;

Application of Statutes

1. Article relevant to the facts constituting an offense and the selection of punishment;

Articles 43(1)5 and 176(2)1 of the former Financial Investment Services and Capital Markets Act (amended by Act No. 11845, May 28, 2013); Article 30 of the Criminal Act (generally, imprisonment with labor);

1. Handling concurrent crimes;

The latter part of Article 37 and Article 39(1) of the Criminal Act

1. Suspension of execution;

Article 62(1) of the Criminal Act (The following consideration of favorable circumstances among the reasons for sentencing):

Reasons for sentencing

1. The range of applicable sentences under law: Imprisonment of one month to ten years; and

2. Scope of recommended sentences according to the sentencing criteria;

Since the latter concurrent crimes of Article 37 of the Criminal Code are concurrent crimes, the sentencing criteria do not apply.

3. Determination of sentence: One year of imprisonment and two years of suspended sentence; and

The defendant is recognized as committing the crime and is in depth, and the act of controlling the market price like the crime of this case is not only to disturb the sound trade order in the stock market, but also to have many and unspecified general investors who participate in stock transactions suffer unexpected damages, and the defendant takes a passive part in the crime of this case led by D, etc. upon K's recommendation, and the defendant does not seem to have obtained substantial profits from the crime of this case. The crime of this case and the crime for which the judgment became final and conclusive are concurrent crimes under the latter part of Article 37 of the Criminal Act, it is necessary to consider equity with the case where the judgment was rendered at the same time, and it is decided as ordered by the disposition, taking into account various sentencing conditions as shown in the argument of this case, such as the defendant's age, character and behavior, environment, motive and means of the crime of this case, the motive and means,

The senior judge of the presiding judge;

Judges Shin Sung-sung

Judges Kim Gin-ho