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Prosecutors Probing Samsung Bank Accounts


A file photo of �Happy Tears� by Roy Lichtenstein, valued at US$7.15 million, which Samsung Group chairman Lee Kun-heee�s wife allegedly bought with money from Samsung slush funds.


Collecting Art and Dodging Taxes
On Looking at a Red-Haired Woman in 'Happy Tears', by Yang Sang-hoon



A special prosecution team began on Tuesday investigating four of Samsung�s bank and securities accounts based on a search and seizure warrant. The whistleblower in the Samsung scandal, the group�s former leading attorney Kim Yong-chul, has singled them out as secret accounts used to hide slush funds. Prosecutors will investigate to find out if Samsung set them up illegally in the names of its executives including Kim to hide secret funds.

Prosecutors on Tuesday summoned Kim, who headed the legal department at the conglomerate's key restructuring office from 1997 to 2004, for questioning. Kim Soo-nam, the deputy team leader, said prosecutors will �finish the essential parts of the investigation� before handing over to a special counsel appointed in the case under a bill approved by parliament Friday. Cheong Wa Dae has decided to approve the bill.

The team is considering whether to investigate fresh allegations of massive accounting fraud Kim made on Monday, when he said Samsung chairman Lee Kun-hee and family helped themselves to funds siphoned off from Samsung subsidiaries as if it were their �private money.� Lee Kun-hee and his son Jae-yong as well as Samsung executives who allegedly managed the slush fund accounts have been banned from overseas travel. Prosecutors plan to seize data kept by Samsung affiliates.

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http://english.chosun.com/w21data/html/news/200711/200711280009.html