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Court issues warrant to detain key suspect in hedge fund scandal

All News 19:06 April 25, 2020

SEOUL, April 25 (Yonhap) -- A Seoul court on Saturday issued a warrant to detain a former executive of an asset management company over his alleged involvement in a massive hedge fund scandal.

The Seoul Southern District Court issued the warrant to detain Lee Jong-pil, a former vice president of Lime Asset Management Co., over his alleged involvement in the firm's cover-up of massive losses and subsequent suspension of fund redemption worth an estimated 1.6 trillion won (US$1.3 billion).

Issuing the warrant, the court cited concerns Lee may destroy evidence or flee.

He did not attend the hearing on the prosecution's request for the warrant.

The investigation has prompted spooked investors to scramble to withdraw their money. In October, the company froze withdrawals, citing an inability to liquidate enough assets to meet the redemption requests.

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