Korean Job Discussion Forums

[garykasparov]

Kim's evidence: bullets or blanks?


The sister of the prime suspect in a high-profile fraud case is due to unveil critical evidence today against presidential frontrunner Lee Myung-bak.

Erica Kim, a 43-year-old U.S.-based lawyer, told local media that her younger brother Kim Kyung-jun has already given prosecutors a secret contract which proves that the Grand National Party's candidate was directly involved in the stock-price rigging and embezzlement scheme.

She said she will make public related documents, possibly including a copy of the contract, at a press conference in her Los Angeles office this morning.

Kim was extradited from the United States and formally arrested Sunday.

The pair claimed that BBK, an investment fund run by the younger Kim, was a wholly owned subsidiary of LK-eBank, a joint venture of Kim and Lee, and that Lee was in full control of both companies.

BBK, operated by Kim, was shut down in 2001 by the nation's financial watchdog for falsifying clients' investment reports.

Shortly after the closure, the disgraced financier founded Optional Ventures, a venture capital firm, and allegedly manipulated its stock prices and embezzled some 38 billion won ($41 million) from the company in 2001.

The GNP has dismissed the so-called under-the-table contract as nonexistent or trumped-up, given Kim's record of counterfeiting official documents, including passports.


Erica Kim [The Korea Herald]


The authorities sent Kim's documents to the National Institute of Scientific Investigation to verify their authenticity, which takes a few days.

Eirca Kim sent a parcel of documents, dated Nov. 13, to the suspect's lawyer, to prove their claims. They will be submitted to the prosecutors soon.

Meanwhile, Kim's lawyer yesterday resigned from the case citing personal reasons.

"(I thought) I would serve as a legal advisor on simple financial and tax-related cases that I am accustomed to. Plus, I expected Kim to come here earlier, not this close to the presidential election," said lawyer Park Su-jong.

He added that Kim is denying all charges against him.

The GNP played down the significance of what Erica Kim called evidence saying that the siblings are "forgery experts."

It claimed that the document in question appeared to be a "fabricated" agreement signed when AM Pappas bought shares in LK-eBank, worth 10 million won. AM Pappas is a paper company created by Kim.

"Lee is a victim in the case. We have long anticipated that Erica Kim, suspected of having committed fraud and forgery, would make such revelations misleading the public," said GNP spokesman Park Hyeong-joon.

The GNP candidate vowed to face any smear attempts squarely.

"I would not compromise or take a roundabout way (regarding the scandal)," Lee said yesterday in a statement on his website.

"The smear campaigns against me, which began early this year, have culminated in the BBK case. Although nothing has turned out to be true, they (other presidential contenders) are still looking forward to a 'major blow' to my bid for presidency."

Lee previously told reporters that he had neither direct nor indirect relations with BBK and never held even a single share in it.

Rep. Chung Bong-ju of the United New Democratic Party claimed that about 4.5 billon won, part of Kim's embezzlement money, flowed into LK-eBank's accounts.

Citing documents prosecutors submitted to the U.S court for Kim's extradition, the liberal lawmaker said that Kim used LK-eBank's accounts to pay back BBK's investors, indicating Lee's possible involvement in the fraud scheme.

State prosecutors are reportedly focusing its probe on the flow of the fraud money, namely some 38 billion won Kim allegedly misappropriated from Optional Ventures. They are also trying to determine whether Lee was the real owner of DAS, formally belonging to his brother and brother-in-law. DAS poured 19 billion won into BBK.

"We are exhaustively tracing the bank account records (related to the BBK fraud case). However, tracking financial transactions that happened five years ago is difficult," said Kim Hong-il, the prosecutor in charge.


By Song Sang-ho


([email protected])




2007.11.21

http://www.theworldpress.com/press/worldpress/southkoreapress/herald.htm

[spliff]

We'll have to see...frankly anything could happen.

[crazy_arcade]

impeccable timing....

[Milwaukiedave]

It could be interesting..especially weeks before the election. My wife said there are 7 candidates running.

Anyone want to take a guess if this will end up causing the election to be very close?

[kermo]

[jinju]

So let's see. There was an investigation into this already and nothing turned up. Now suddenly a month before the elections a guy and his sister known for forging passports and other documents are going to produce documents that supposedly prove Lee is really the guilty one but were not produced when it could have savd the bacon of this guy initially? Great timing. Too bad for them even if Lee is eliminated before registration the GNP can still field another candidate which means Park will be the GNP candidate. And there's still Lee Hoi Chang, both of whom will beat Chung easily.

[jinju]

Well, the bomb went fizzzzzzzzzzzzz.

http://english.chosun.com/w21data/html/news/200711/200711210025.html