Prison Sentence, Probation, and Fine Finalized for Accomplice in Deutsch Motors Stock Manipulation

A prison sentence with probation has been finalized for an individual identified as Lee, who was indicted and detained on charges of being an accomplice in the Deutsch Motors stock manipulation scheme.

The Supreme Court's Third Division (presiding Justice Oh Seok-joon) finalized the lower court's ruling today (August 13) sentencing Lee, who was indicted for violating the Capital Markets Act, to 10 months in prison, suspended for two years, and a fine of 40 million won.

Lee was indicted in December of last year by the special prosecutor team led by Min Joong-ki on charges of conspiring with former Deutsch Motors Chairman Kwon Oh-soo, former BlackPearl Invest CEO Lee Jong-ho, and others to manipulate Deutsch Motors stock prices between October 2010 and December 2012, thereby illicitly acquiring 13 million won in unfair profits.

The special prosecutor team concluded that First Lady Kim Keon-hee also conspired with the stock manipulation group to generate approximately 810 million won in gains between October 2010 and December 2012, and that Lee was involved in this process.

Lee has also been identified as the person who introduced Jeon Sung-bae, known as the shaman Geonjinbeopsa, to First Lady Kim.

Lee fled the scene during a search and seizure by the special prosecutor team in October of last year, but was apprehended in Chungju, North Chungcheong Province, about a month later and brought to trial while in detention in December of that year.

The first trial found Lee guilty, determining that Lee conspired in the second phase of the Deutsch Motors stock manipulation led by former Chairman Kwon and others, and sentenced him to 10 months in prison, suspended for two years, and a fine of 40 million won.

The second-instance judgment was identical.

The appellate court pointed out, "The defendant actively participated in the second round of stock manipulation by directly placing market-manipulating orders using accounts under other people's names," adding, "The number of market-manipulating orders reached 68, indicating that he played a significant role."

Although Lee appealed the verdict, the Supreme Court dismissed the appeal, stating, "There are no errors in the lower court's judgment that violated the rules of logic and experience to exceed the limits of the principle of free evaluation of evidence, nor did it misinterpret legal principles regarding joint principals, criminal liability after withdrawal from a conspiracy, or the suspension of the statute of limitations."

First Lady Kim Keon-hee, who was indicted separately in connection with the Deutsch Motors stock manipulation charges, was acquitted in the first trial on the grounds that the statute of limitations had expired or that she was not in a conspiracy.

However, the second trial overturned the ruling, partially recognizing Kim's participation in price manipulation and finding her guilty.

In addition, as parts of the charges related to accepting valuables from the Unification Church were additionally recognized as guilty, she received a heavier sentence of four years in prison compared to the first trial's one year and eight months in prison.

The Supreme Court ruling for First Lady Kim's case, originally scheduled for July 16, was postponed once to July 24, and then indefinitely postponed just a day before the scheduled ruling in order to refer the case to the full bench.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.