[theqoo][EXCLUSIVE] BANG SIHYUK ACCUSED OF 400 BILLION WON FRAUDULENT TRANSACTION THROUGH HYBE SALE… FACES POTENTIAL LIFE IMPRISONMENT

Bang Sihyuk, chairman of HYBE, has been engulfed in allegations of fraudulent transactions.

On the 28th, the Korea Economic Daily reported that the Financial Supervisory Service (FSS) plans to request a prosecution investigation into Bang Si-hyuk on suspicion of fraudulent and deceptive transactions.

According to the report, the FSS’s Investigation Division 2 has secured circumstantial evidence that in 2019, Bang Si-hyuk deceived existing investors by telling them there was “no plan for an initial public offering (IPO),” and persuaded them to sell their shares to a private equity fund (PEF) established by an acquaintance of Bang. This occurred while HYBE was actually moving forward with its IPO, including filing an application for a designated audit. Bang then signed a contract to share 30% of the investment profits with the PEF and received about 400 billion KRW in settlement. The shareholders’ agreement between them was not disclosed in the securities registration statement during the IPO process.

The FSS judged that the actions during HYBE’s listing process constitute fraudulent and deceptive transactions under the Capital Markets Act and plans to notify the prosecution through fast-track procedures. The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency is also investigating the same case.

It is reported that the FSS secured multiple pieces of evidence showing HYBE was actively proceeding with the IPO at the time. In November 2019, HYBE contracted with Han Young Accounting Corporation as the designated auditor, a mandatory step for IPOs. When applying for a designated auditor, companies must submit documents such as the lead underwriter agreement or minutes of board meetings proving the IPO process is underway. HYBE, however, reportedly gave contradictory information, telling existing investors there was no IPO plan, while informing financial authorities of the intention to go public.

If Bang Sihyuk’s illegal activities are confirmed, it is expected that severe punishment will follow. According to Article 443 of the Capital Markets Act, violations resulting in gains or avoided losses exceeding 5 billion KRW are punishable by life imprisonment or a prison sentence of at least five years.

The financial authorities are also said to be planning a strict response considering the ripple effects and symbolic importance on the capital market.

source: https://naver.me/GKbHKnry

original post: here

1. Please please ㅜㅜ Please

2. HYBE, please go down~ ㅋㅋㅋㅋㅋㅋㅋ

3. Please make it happen

4. May Bang Sihyuk's assets be confiscated and he goes bankrupt

5. So we're seeing the end of HYBE now?? ㅋㅋㅋㅋㅋㅋㅋ

6. HYBE flop

7. If that doesn't get punished, who will?

8. So HYBE is finally going for the downfall ㅋㅋㅋ I wonder what the maids' responses are

9. But why are you putting the photo of the girl group next to him? Remove it

10. Look at the trash journalist putting his photo besides the girl group