Probe into fraud by ex-secretaries of Shinhan CEO

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Probe into fraud by ex-secretaries of Shinhan CEO

In the middle of the investigation of the chairman of Shinhan Financial Group, Ra Eung-chan, it was learned yesterday that the Seoul Central District Prosecutors’ Office is investigate two former secretaries of his as well, on suspicion that they pocketed large amounts of money from a shareholder.

The shareholder’s son accused the bank of fraud and embezzlement in June 2009 but prosecutors dropped the case due to insufficient evidence.

“The former secretaries who managed assets of shareholders pocketed millions of dollars,” the son said.

The shareholder surnamed Bae deposited his assets with the bank, but the two former secretaries embezzled the money after he died in 2000, according to the son and a worker at Bae’s company.

The son appealed in a second suit and the Seoul High Court ordered in April the prosecutors’ office to reopen the case.

“The secretaries collected the money by buying the bonds of Bae’s company at a cheap price without our consent and burdening a large sum of money on the company,” the accusers said.

“They used the fact that we did not know anything about how much money Bae possessed at the time.”

Prosecutors said Bae was one of 431 shareholders who were Korean residents in Japan and contributed to supporting the bank.

The Financial Supervisory Service said Friday that it will impose a heavy disciplinary penalty on the chairman for opening a bank account under a false name.

By Kim Hee-jin []
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