Brokers in Optimus fund scam get prison sentences on fraud charges

Two brokers indicted on charges of fraud linked to a massive investment fund scam centered on Optimus Asset Management were given prison sentences by a court on Friday.

The Seoul Central District Court sentenced one broker surnamed Shin, who formerly ran an entertainment agency, to an imprisonment of four years and another broker surnamed Kim to three years and six months in prison after finding them guilty of defrauding the CEO of Optimus of 1 billion won ($886,000).

The Optimus scandal centers on allegations that the private equity company solicited funds worth about 1.2 trillion won from around 2,900 investors for investments in public institutions but actually funneled most of the money into risky assets, causing huge losses to the investors. The Optimus CEO and a number of other Optimus executives and officials from local financial institutions have been arrested on charges of fraud in the prosecution's widening probe into the scandal.

Brokers Shin and Kim are accused of receiving 1.65 billion won from the Optimus CEO on the pretext of bribing a representative of minority shareholders of Haeduk Powerway Co., a ship parts manufacturer that was acquired by Optimus, in an attempt to influence the shareholders' voting rights.

But the defendants offered just 650 million won to the shareholder representative and personally spent the remaining 1 billion won.

"The defendants abused the trust of the Optimus CEO and swindled 1 billion won even though they knew the money was from many investors," the court said.

"Even worse, they used most of the money obtained by fraud for entertainment expenses, living expenses of female acquaintances and personal debt settlement. Their crimes are serious, and they have not repented," the court said. (Yonhap)