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Samsung Group heir <keyword id="804640" type="PERSON" weightage="20" keywordseo="Lee-Jae-yong">Lee Jae-yong</keyword> was indicted on Tuesday for his role in a controversial merger and alleged accounting frauds. Prosecutors charged Lee, the vice chairman of Samsung Electronics, with unfair trading, stock manipulation, breach of trust in relation to the 2015 merger between two Samsung affiliates seen as a key step toward his succession, and alleged accounting fraud at the pharmaceutical unit of Samsung Biologics, reports Yonhap News Agency. Ten other former and incumbent Samsung executives were also indicted on similar charges. The investigation team led by senior prosecutor Lee Bok-hyun said in a statement that they reached a conclusion that judicial judgment is necessary in the case, given "the clear-cut facts supported by evidence, the gravity of the case and the need to resolve the public's suspicions surrounding the case". Prosecutors suspect that Lee was involved in a company-wide scheme to plan the merger of Cheil Industries Inc. and Samsung C&amp;T and fraud in a way to take over control of the country's biggest conglomerate from his ailing father, Lee Kun-hee, who suffered a heart attack in 2014. He is also suspected of being part of the alleged plan to inflate the value of Samsung Bioepis, a joint venture between Samsung Biologics, a subsidiary of Cheil Industries, and the US-based Biogen Inc. Lee has consistently denied the allegations since the investigation started in November 2018.

Samsung heir Lee Jae-yong charged with fraud over 2015 merger

Seoul, June 4 (IANS) South Korean prosecutors on Thursday sought an arrest warrant for Samsung Electronics' Vice Chairman Lee Jae-yong, an heir apparent of the Samsung Group, over accounting fraud. The Seoul Central District Prosecutors' Office asked a Seoul court to arrest the heir of Samsung Group, the country's biggest family-controlled conglomerate, on charges of illegal trading and market price manipulation under a capital market act and accounting fraud under an act on external audit of corporation, reports Xinhua news agency. The country's financial regulator ruled in November 2018 that the biopharmaceutical unit of Samsung Group violated accounting rules, referring the case to the prosecution office for criminal investigation. Samsung BioLogics has been suspected of committing a fraudulent accounting to help the Samsung heir inherit a management control over the entire group from his ailing father, Samsung Electronics Chairman Lee Kun-hee. Samsung BioLogics altered the method to evaluate its affiliate, Samsung Bioepis, into the mark-to-market valuation in 2015, leading to a net profit of 1.9 trillion won ($1.6 billion) in the year after years of losses. The biopharmaceutical unit of Samsung, set up in 2011, launched a joint venture, Bioepis, with the US-based Biogen in 2012. In 2015, Cheil Industries and Samsung C&amp;T merged into Samsung C&amp;T, the currently de-facto holding company of Samsung Group. Cheil Industries, controlled by Lee at the time, inflated its valuation by overvaluing Samsung Biologics. Lee was believed to have controlled the merged Samsung C&amp;T, one of major shareholders of Samsung Electronics, and the family was believed to have controlled Samsung Group with a fraction of shares through cross-shareholding. The financial market regulator estimated the fraudulent accounting at about 4.5 trillion won ($3.7 billion). --IANS ksk/

Arrest warrant sought for Samsung heir over accounting fraud

Seoul, June 8 (IANS) Lee Jae-yong, the de facto leader of Samsung Group, South Korea's largest conglomerate, appeared in court on Monday for a hearing to decide whether he will be arrested again amid allegations of his involvement in a merger and accounting fraud. Lee, also the vice chairman of Samsung Electronics, showed up at the Seoul Central District Court in southern Seoul, reports Yonhap News Agency. The hearing is likely to last at least several hours, as many expect the court's decision to come out late Monday night or early Tuesday morning. He is under probe in connection with the controversial merger of two Samsung affiliates in 2015, an apparent key process in his takeover of control of the group from his ailing father, Lee Kun-hee. Last week, the Seoul Central District Prosecutors Office sought an arrest warrant for the Samsung scion, arguing he should be put back in jail, given the seriousness of his alleged wrongdoings and the possibility of destroying relevant evidence. It is a prelude to a widely expected indictment against Lee. Prosecutors also requested arrest warrants for two former Samsung executives, Choi Gee-sung and Kim Jong-joong, who had led the group's now-disbanded control tower, the Future Strategy Office. The three are accused of engaging in unfair trading, stock price manipulation and violation of laws on external audits. Kim faces an additional charge of making a false testimony in court. Investigators suspect the group's top management of having been deeply involved in what they believe was a systemic effort to help the father-to-son transition of Samsung's leadership. They believe that Lee was involved in a scheme to inflate the value of Cheil Industries Inc. and lower that of Samsung C&amp;T prior to the merger in 2015, Yonhap News Agency reported. Lee and his aides were also suspected of inflating the value of Samsung Bioepis, a joint venture between Samsung Biologics and the US-based Biogen Inc., by approximately 4.5 trillion won ($3 billion). Samsung Biologics is a subsidiary of Cheil Industries, of which Lee was the largest shareholder, with a stake of 23.2 per cent. The probe began in November 2018 when the Securities and Futures Commission under the Financial Services Commission filed a complaint against Samsung Biologics over suspicions of accounting fraud. Samsung has said that it has never deliberately manipulated the value of its companies and the prosecution has wrongly viewed the 2015 merger as related to its management succession. If the warrant is approved, it will be the first time in 28 months that Lee will be arrested for criminal charges. He was imprisoned for about a year in 2017 for bribing a confidant of former President Park Geun-hye in return for her administration's support for the 2015 merger. He was released in February 2018 after his sentence was suspended by an appeals court. But the Supreme Court ordered a retrial last year revising the size of the bribes. --IANS ksk/

Samsung heir attends arrest warrant hearing

Seoul, June 9 (IANS) A South Korean court on Tuesday rejected the approval of an arrest warrant against the de-facto head of Samsung Group in connection with the controversial merger of two affiliates in 2015 with the alleged goal of cementing his leadership. The decision was made by Seoul Central District Court, where Lee Jae-yong had appeared Monday to complete proceedings that lasted for nine hours, reports Efe news. In the early hours of Tuesday the court decided that there was not sufficient probable cause to order the arrest of the Samsung heir. "There was insufficient explanation on the need to arrest the defendants against the principle of trial without detention," Judge Won Jung-sook said in statements. "In light of the importance of the case, whether the defendants are responsible, and if so, how much they are, should be determined through sufficient legal battles and court hearings," the Judge added. Two other group executives, Choi Gee-sung and Kim Jong-joong, who together with Lee are alleged by the prosecution to be the masterminds of the aforementioned merger, also avoided arrest. Several irregularities have been attributed to this operation, including alleged accounting fraud aimed at consolidating Lee's leadership shortly after his father, the group's chairman Lee Kun-hee, had a heart attack from which he has not yet recovered. All three executives are accused of stock price manipulation, violating external audit laws and unfair trading. Investigators believe that the value of Cheil Industries, one of the two companies of the group that was merged and of which Lee was the majority shareholder, was artificially inflated, and the opposite was done with the other company involved, Samsung C&amp;T. The three are also believed to have inflated the value of Samsung Bioepis, a joint venture between US-based Biogen and Samsung Biologics, which is also a subsidiary of Cheil, by some 4.5 billion won ($3 billion). Lee, who has denied the accusations, is also awaiting retrial for his alleged role in the so-called "Korean Rasputin" corruption scandal that rocked the country in 2016 and led to the impeachment of then-president Park Geun-hye. Lee was arrested in 2017 in connection with the case and went on to spend a year in jail. He was released after an appeals court suspended his sentence, but the Supreme Court ordered a retrial last year revising the size of the bribes. Last month the magnate apologized for the scandals involving the Samsung Group and said he would not be continuing with the system of heredity transfers of control in South Korea's largest company. --IANS ksk/

S.Korean court rejects arrest warrant for Samsung head

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Mario Tama/Getty Images</div></div></div><ul class="summary-list"><li>An insurance company is launching what it says is the first embezzlement insurance for wealthy individual investors.</li><li>Many investors facing fraud have trouble recovering their money, said financial adviser Steve Craffen, the chair of the National Association of Personal Financial Advisers.</li><li>One lawyer, who co-wrote an 800-page book on Ponzi schemes, said the insurance 'could be a great thing for investors' but she cautions buyers to read the fine print. </li></ul>Travus Pope understands too well the need to protect against fraud.The insurance executive is still working through a fraud claim against a distributor for his last venture, a film company. He was set to reach a judgement in December, but the distributor filed for bankruptcy just before, leaving Pope without a way to collect what he was owed Alongside two of his close friends, who also were the victims of business fraud, the trio decided to spend two years creating a new product to protect wealthy individual investors in case their financial adviser or asset manager embezzles their money.Their new business, Fort Myers, Florida-based Capital Shield Insurance Services, on Tuesday launched what it says is the first embezzlement insurance for individual investors."You can buy insurance for almost everything else of value in your life, from houses and cars to boats and art," Pope said. "But until now, individual investors have not been able to insure their money in the event that their asset manager or investment advisor embezzles their money."Pope said investors have good reason to be cautious about fraud, particularly after the Bernie Madoff scandal a decade ago. He said Capital Shield's new product would have covered the tens of thousands of investors hit by that fraud. As of July, a government-run insurance program had <a href="https://www.sipc.org/news-and-media/news-releases/20180705">collected over $13 billion for Madoff's victims</a>, about 75% of the $17.5 billion lost by individuals covered by that insurance. See more:<a href="https://www.businessinsider.com/how-bernie-madoffs-ponzi-scheme-worked-2014-7"> 5 Years Ago Bernie Madoff Was Sentenced to 150 Years In Prison - Here's How His Scheme Worked</a>A decade after Madoff, government regulators continue to uncover instances of fraud, particularly against the elderly. In February, the Securities and Exchange Commission <a href="https://www.sec.gov/news/press-release/2019-19">stopped a Florida investment fund scheme</a>, alleging that two men defrauded individual investors out of $3.6 million. In January, a Florida court <a href="https://www.businessinsider.com/a-florida-company-must-pay-1-billion-in-ponzi-scheme-2019-1">ordered an alleged Ponzi scheme operator to pay $1 billion for defrauding 8,400 clients</a>, many of them elderly. Kathy Bazoian Phelps, a Los Angeles-based lawyer with Diamond McCarthy, co-wrote an 800-page book on Ponzi schemes and even considered launching a similar product to protect investors from fraud. "It's ridiculous how much this is a problem, still," she said. However, she's skeptical that Madoff's investors - or even most fraud victims - could benefit from such a product because of the variety of ways they invested in the Ponzi scheme. "It's a good start," Phelps said. "It's a potentially useful product, but I think the definitions and the scope have to be worked out. Anyone considering this needs to understand the coverage."With this new product, investors can buy coverage to cover $1 million to $10 million if an adviser is indicted, with larger limits expected in the future. Right now, the insurance covers investments in publicly-traded markets, but it could be expanded to other areas. <a href="http://newsletter.businessinsider.com/join/4np/wall-st-insider&amp;hash=f4e91136c13f3c40c496d77bc7347502">Sign up here</a> for our weekly newsletter Wall Street Insider, a behind-the-scenes look at the stories dominating banking, business, and big deals.Pope said the product could appeal to any of the 7.5 million millionaires in the US, particularly to investors who lack the time or knowledge to monitor their portfolios for fraud. Clients could include elderly investors, or their heirs; those overseeing and those benefitting from trusts; and divorcees handling their finances alone.Pope and his co-founders have received significant interest in the product from major insurance agencies, he said. He compared the nascent product to cybersecurity insurance, a product that didn't exist decades ago and now commands tens of billions of dollars in premiums.New Jersey-based financial adviser Steve Craffen, who chairs the National Association of Personal Financial Advisers, said that in the cases of fraud he's seen, investors often struggle to recover their money. Often, independent wealth advisers lack the "deep pockets" of a major brokerage to repay clients after they're found guilty.He agreed with Pope that embezzlement insurance could help elderly and trustees in particular."For people that are very cautious and monitor their portfolio and are with a traditional custodian - a Schwab or a TD Ameritrade - fraud is becoming much more difficult," Craffen said.Those groups typically have checks in place to prevent fraud - advisers often can't wire money to accounts other than their clients', for example.Craffen noted that the most infamous examples of fraud, Madoff's Ponzi scheme, hurt investors because Madoff kept investors' capital in-house instead of at a custody bank, where it would have been subject to more oversight. "I bet that true fraud is not that common," he said. "I think what's more common is advisers doing things that are just wrong for the client," like investing in high-fee products, he added. In her legal practice, Phelps said she's seen many examples of fraud and embezzlement that may not end with an indictment, which is when Capital Shield's policy kicks in. "Like any insurance policy, there will be a million ways to find there's not coverage," she said. "I'm leery of how much protection it'll provide, but I hope it does - it could be a great thing for investors." <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/samsung-galaxy-fold-best-features-foldable-phone-2019-2">Samsung unveiled its Galaxy Fold - here are the best features of the $1,980 foldable phone</a></h3> <div> </div> </div>

A new insurance product is trying to protect millionaires from embezzlement and it shows how far-reaching financial fraud is

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="https://www.flickr.com/photos/davidchief/477355231/">David Martyn Hunt/Flickr (CC)</a>One scandal-free horse.</div></div></div>What links Samsung, an $830,000 (£683,000( horse, and the South Korean national pension fund?They're just some of the ingredients in a huge, surreal presidential scandal rocking South Korea.Choi Soon-sil, an aide of president Park Geun-hye, has been accused of shaking down businesses to enrich themselves via a slush fund, with the assistance of president Park - whose future is now in doubt.The evolving scandal has shaken the country, and Samsung, South Korea's largest company, is bring dragged in.<h2>Back up: What on earth is going on?</h2>In short: Choi Soon-sil, a close friend of president Park Geun-hye, is accused of taking cash in exchange for influence from companies.Choi allegedly had access to classified material and drafts of speeches, <a href="http://www.koreatimes.co.kr/www/news/nation/2016/11/116_217566.html">which were discovered on a tablet computer</a> in one of her offices.She now faces charges of abuse of power and fraud, <a href="http://uk.businessinsider.com/r-how-ties-to-an-equestrian-princess-landed-samsung-at-center-of-a-scandal-2016-12">according to Reuters.</a>President Park's future now looks dubious. She has been impeached by parliament and stripped of her powers, but continues to deny wrongdoing.<h2>And Samsung comes into this, how?</h2>Investigators are trying to ascertain whether Samsung paid bribes to Park-linked organisations in an effort to get support from the national pension fund to get a merger approved between two Samsung entities that would give the company's heir-apparent Jay Y. Lee more control. (<a href="http://www.bbc.co.uk/news/business-38551622">The pension fund owned shares in both entities</a>.)Samsung's offices have been raided twice, and prosecutors are currently weighing up whether they plan to arrest two Samsung executives, <a href="https://twitter.com/youngvulgarian/status/818768955376631809">according to Reuters</a>, or whether they will be considered witnesses in the investigation.Some observers believe Lee will likely be called in by prosecutors next. "Summoning two top guys at Samsung Group may mean the special prosecutors are carrying out the final checks before calling in Jay Y. Lee," <a href="https://www.bloomberg.com/news/articles/2017-01-09/an-830-000-horse-a-presidential-scandal-and-samsung-succession">Hansung University professor Kim Sang-Jo told Bloomberg</a>. "Samsung stands at the center of Choi-gate."Samsung did not immediately respond to Business Insider's request for comment.<h2>But what about the horse?</h2>Ah yes, the horse. <a href="http://uk.businessinsider.com/r-how-ties-to-an-equestrian-princess-landed-samsung-at-center-of-a-scandal-2016-12">Reuters reports that in 2015</a>, Samsung paid $18 million (£14.8 million) to Core Sports International, a consulting firm owned by - you guessed it - Choi Soon-sil.The company ended up sponsoring an equestrian team to the tune of $8 million (£6.6 million) - and one of the members was Chung Yoora, daughter of Choi. It also spent $830,000 (£680,000) on a horse called Vitana V that was used by Chung.There were reportedly supposed to be six people on the team, but in reality it was only Chung and her coach.<h2>So, is that it?</h2>Samsung has made payments to other initiatives supported by Choi Soon-sil. But this scandal isn't limited to Samsung. <a href="http://www.bbc.co.uk/news/business-38551622">According to the BBC</a>, eight firms so far have admitted giving money to funds linked to the president.But what makes the whole affair so much stranger is the "cult" allegations.Choi Soon-sil is the daughter of Choi Tae-min, the now-deceased leader of a cult-like group. Rumours swirled that President Park had been indoctrinated by Choi, to such an extent she felt compelled to deny them in November 2016 when she apologised for her relationship with (the younger) Choi.There have been claims that I fell for a religious cult or had [shamanist rituals] performed in the Blue House [the presidential palace], but I would like to clarify that those are absolutely not true," <a href="http://www.bbc.co.uk/news/world-asia-37869993">she said, the BBC reported</a>.It's a surreal, far-reaching affair - and there's still plenty we don't know. But as the investigation continues, it should slowly become clearer. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/stratfor-releases-annual-report-predictions-china-russia-europe-economy-terrorism-trump-us-2017-2016-12">These are Stratfor's chilling predictions for 2017</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="B3cmRtODE6AVvM2Q_w6SvkCHd1DxId92" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

You Searched For "samsung heir fraud" and got 7 results

Samsung heir Lee Jae-yong charged with fraud over 2015 merger

IANS

Arrest warrant sought for Samsung heir over accounting fraud

IANS

Samsung heir attends arrest warrant hearing

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S.Korean court rejects arrest warrant for Samsung head

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A new insurance product is trying to protect millionaires from embezzlement and it shows how far-reaching financial fraud is

Meghan Morris

An $830,000 horse links Samsung and a huge South Korean presidential scandal

Rob Price

Check out the more than 50 pitch decks fintechs used to raise millions in funding from top investors

Shannen Balogh,Anita Ramaswam…

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