Stock Manipulation Ring Indicted for Price Rigging and Aiding Fugitive Director

Hankyoreh reports on a significant legal crackdown against a stock price manipulation ring, detailing the indictment of six individuals for orchestrating a complex scheme involving wash trading and the use of 'straw man' directors. The article's tone is serious and investigative, reflecting the gravity of financial crimes that undermine market integrity.

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They are suspected of manipulating the stock price of KOSDAQ-listed company Fortis by placing approximately 240,000 instances of market manipulation orders, including high-priced purchases and wash trades, using more than 100 accounts from 2018 to 2019.

The core of the story lies in the alleged manipulation of Fortis's stock price on the KOSDAQ market, a sector often scrutinized for volatility. The use of over 100 accounts and a staggering 240,000 instances of market manipulation paints a picture of a sophisticated and prolonged criminal operation. The prosecution's focus on these details emphasizes the scale and intent behind the fraud.

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They are also accused of aiding the escape of 'N', a so-called 'straw man' who merely lent his name to the accounts primarily used for market manipulation.

A particularly striking element is the indictment for aiding the escape of a 'straw man' director, identified as 'N,' who was allegedly set up to bear the legal consequences. The promise of substantial compensation ('100-200 million won per year of imprisonment') for taking the fall highlights the calculated nature of the crime and the desperation to shield the true masterminds. The subsequent flight of 'N' to Vietnam and his eventual apprehension after six years underscore the international dimension and the challenges of pursuing such financial fugitives.

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They designed the crime from the beginning with the structure that 'N', who only lent his name, would take responsibility, promising to compensate him 100 to 200 million won per year of imprisonment if he faced criminal charges.

From a South Korean perspective, as presented by Hankyoreh, this case is about upholding the fairness of the financial markets and ensuring accountability. The article implicitly critiques the loopholes that allow such schemes to be devised, particularly the exploitation of individuals as scapegoats. The narrative serves as a warning against financial fraud and reassures the public that regulatory bodies are actively pursuing and prosecuting offenders, thereby reinforcing trust in the KOSDAQ market.

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When the Financial Services Commission's investigation began in the second half of 2019, 'A' and others immediately fled with 'N' to Vietnam the next day and provided escape funds for over five years, hindering the investigation.