1. Case Overviewa. Party Represented by Barun Law
We represented the CEO of a KOSDAQ-listed company who had been indicted in custody for violations 메이저 바카라사이트 Financial Investment Services and Capital Markets Act.
b. Background 메이저 바카라사이트 Case
The client, as the CEO of a KOSDAQ-listed company, sought to engage in a biotechnology business and, to that end, conducted a valuation of an intangible asset, namely, an "anticancer drug", owned by a Canadian biotechnology company. Afterward, the client entered into a contract to acquire the relevant intangible asset and disclosed the transaction.
Subsequently, during an external audit, the listed company received a disclaimer of audit opinion due to issues including the appropriateness 메이저 바카라사이트 valuation amount 메이저 바카라사이트 biotechnology intangible asset, which led to a suspension of trading 메이저 바카라사이트 company's shares. In this situation, the client proceeded with a corporate spin-off and merger 메이저 바카라사이트 listed company and transferred the intangible asset to a subsidiary, which was later listed on the K-OTC market.
c. Charges
The prosecution alleged that the client made false disclosures regarding the valuation 메이저 바카라사이트 biotechnology intangible asset, and, despite lacking any intent or ability to continue the biotechnology business, used it solely as a means of boosting the share price. The prosecution asserted that the client created the appearance that the intangible asset had appropriate value and exaggerated the prospects of successful business operations, thereby using false statements or representations regarding material matters in connection with the trading of financial investment products to obtain unjust gains of approximately KRW 9.2 billion (fraudulent unfair trading).
In addition, the prosecution alleged that the client made false statements regarding the status 메이저 바카라사이트 subsidiary when filing a securities registration statement in the course 메이저 바카라사이트 listed company's corporate spin-off (false statements in a securities registration statement), failed to submit a securities registration statement during the merger 메이저 바카라사이트 subsidiary (failure to submit a securities registration statement), and obstructed business by deceiving the K-OTC officer into listing the subsidiary on the K-OTC market as if all concerns regarding going-concern issues had been fully resolved, even though the officer had initially refused the K-OTC registration on the grounds of going-concern uncertainty (obstruction of business).
On the basis of these allegations, the prosecution indicted the client in custody and, after a trial lasting two years and six months, sought a heavy sentence of six years' imprisonment, a fine of approximately KRW 23.8 billion, and forfeiture of approximately KRW 2.9 billion.
2. Our Arguments and RoleWe meticulously reviewed an enormous volume of evidence records running into tens of thousands of pages and conducted a thorough analysis 메이저 바카라사이트 legal principles governing violations 메이저 바카라사이트 Capital Markets Act and obstruction of business. Based on this work, we advanced the following core defenses
(1) Regarding the charge of fraudulent unfair trading: We focused on the fact that neither the applicable statutory provisions nor the factual allegations set forth in the indictment were specified at all, and that the alleged conspiracy among the defendants and the specific acts of execution were likewise unspecified. We argued that these defects constituted grounds for dismissal 메이저 바카라사이트 indictment due to lack of specificity 메이저 바카라사이트 charged facts. Furthermore, we actively demonstrated, through objective materials such as valuation reports prepared by external institutions, overseas business travel records, and emails, that the acquisition 메이저 바카라사이트 intangible asset was carried out properly and lawfully, and that the listed company possessed sufficient human and material resources to engage in the biotechnology business.
(2) Regarding the charge of failure to submit a securities registration statement: We identified the issue 메이저 바카라사이트 "subject 메이저 바카라사이트 act (the person subject to punishment)," which other co-defendants' counsel had failed to detect, and persuasively argued before the court that, because the client had already resigned from the position of CEO 메이저 바카라사이트 subsidiary at the time 메이저 바카라사이트 alleged offense, the client could not qualify as the subject of this status-based crime.
(3) Regarding the charge of obstruction of business: Through witness examination, we established that the person who actually used the allegedly deceptive expressions cited by the prosecution was a third party unrelated to the client, thereby proving that the client neither conspired in nor directed any acts constituting obstruction of business.
3. Judgment메이저 바카라사이트 four charges brought against the client, the court acquitted the client of three charges, specifically, fraudulent unfair trading, failure to submit a securities registration statement, and obstruction of business and, with respect to the remaining charge, significantly reduced the prosecution's sentencing request and imposed only a fine of KRW 10 million. No forfeiture was ordered.
4. Significance 메이저 바카라사이트 JudgmentThe client, who had served as both the CEO of a KOSDAQ-listed company and the CEO of its subsidiary, faced a grave crisis in which the client could have been convicted of fraudulent unfair trading tantamount to stock price manipulation, potentially resulting in imprisonment as well as fines and forfeiture amounting to hundreds of billions of won.
However, immediately after being taken into custody, the client retained Barun Law, which possesses extensive expertise in Capital Markets Act violations and prosecutorial investigative practice. We persistently demonstrated the impropriety 메이저 바카라사이트 indictment by precisely identifying the structural flaws in the prosecution's investigation, the lack of specificity 메이저 바카라사이트 charged facts, and the inherent contradictions therein.
The court accepted our arguments, acknowledged that grounds existed for dismissal of certain charges due to lack of specificity, and rendered acquittals on the basis that innocence had been clearly established through the trial proceedings. Moreover, contrary to the prosecution's request for a custodial sentence of six years, the court greatly limited the scope 메이저 바카라사이트 client's responsibility and imposed only a minor fine of KRW 10 million.
This case enabled the client to recover his reputation by being cleared of most 메이저 바카라사이트 charges for which he had been indicted in custody, and to completely avoid an economic burden amounting to hundreds of billions of won.
□ Attorneys in charge: Choi Seung-hwan, Kang Da-rong, Han Min-guk
