Prosecution raids Shinhan Investment over high-profile financial scam case
SEOUL, The prosecution on Friday raided a local brokerage house in connection with a snowballing financial fraud scandal involving a hedge fund, officials said.
Investigators from the Seoul Southern District Prosecutors Office raided the headquarters of Shinhan Investment Corp. in western Seoul to secure materials related to Lime Asset Management.
Shinhan faces disciplinary action from the Financial Supervisory Service for misselling Lime funds.
Lime is under probe over its alleged cover-up of massive losses and subsequent suspension of fund redemption worth an estimated 1.6 trillion won (US$1.39 billion).
The case is developing into a high-profile lobbying scandal, in which former and incumbent high-ranking government officials and politicians are embroiled.
Earlier this week, the prosecution raided KB Securities, which also distributed Lime funds.
Source: Yonhap News Agency