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| Ra Deok-yeon, a key suspect in a large-scale stock manipulation case, speaks in an interview with Yonhap News TV in Seoul, in this May 1 photo. Yonhap |
The head of an investment consulting firm was arrested Thursday for suspected stock manipulation that has shaken the local financial markets.
The Seoul Southern District Court issued an arrest warrant for Ra Deok-yeon, the head of an unregistered investment consulting firm, citing the risk of him destroying evidence and fleeing.
Prosecutors had filed for the writ late Wednesday and the court held a detention hearing earlier in the day.
Ra's firm was at the center of the recent collapse of stock prices of nine companies, including energy firm Samchully and Seoul City Gas.
The stocks of the nine listed companies had steadily risen for years before nose-diving late last month following mass sell-offs through SG Securities Korea Co., the local branch of the Societe Generale Group of France.
About 1,000 investors are said to have suffered a huge loss estimated to be between 800 billion won ($606 million) and 1 trillion won.
The 42-year-old Ra is suspected of having manipulated the prices of the stocks through an "order matching" technique after taking over mobile phones and personal information from investors.
Prosecutors believe that Ra and those involved in the scheme pocketed 264 billion won in unfair profits by manipulating the stock prices, half of which, or some 132 billion won, was taken in the name of commission.
Ra is also accused of concealing part of the investment proceeds and evading taxes through his business entities, and running an unregistered investment consulting business. (Yonhap)
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