Arrest warrant sought for Korean CJ Group chairman
2013-06-26 16:46
Warrant sought for CJ Group chairman
By Kim Jae-wo
The prosecution said Wednesday that it has applied for an arrest warrant for CJ Group Chairman Lee Jay-hyun on charges of tax evasion, corporate fund embezzlement and stock manipulation. The Seoul Central District Prosecutors’ Office said that it asked the Seoul Central District Court to issue the warrant, saying the charges are serious enough for him to be taken into custody and the amount of illegal gains was huge. The court said that senior Judge Kim Woo-soo will review the application. Prosecutors quizzed the 53-year-old tycoon Tuesday for 17 hours over allegations that he amassed a secret fund worth between 400 billion won ($347 million) and 500 billion won both at home and abroad through various illegal methods, and evaded taxes in the process. Sources say Lee admitted to instructing the group’s executives to manage the secret fund, but said it was not for personal use and that there was no intentional criminal acts. Lee is under suspicion of evading 51 billion won in taxes in creating the fund and misappropriating 60 billion won of company money. The country’s 10th richest man is additionally accused of inflicting financial losses worth 35 billion won on the group by fraudulently purchasing two buildings in Tokyo.
About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments.
KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community.
KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.
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