SEOUL, Nov. 16 (Yonhap) -- The head of Deutsch Motors Inc., a BMW car dealer in South Korea, was arrested on Tuesday on charges of manipulating the company's stock prices.
Kwon Oh-soo, the chairman and the largest shareholder of Deutsch Motors, allegedly leaked insider information, such as plans to secure new investment from overseas private equity funds, to induce purchases of Deutsch Motors' stocks and later placed fake buying bids using his stock account to jack up the prices.
He was also suspected of mobilizing influential market players and contacting stock companies and analysts to stir up market buzz around the company and promote purchases.
Kwon and his partners are alleged to have purchased themselves or induced investors to buy 15.99 million stocks worth 63.6 billion won (US$53.9 million) from December 2009 for about three years.
The probe was launched after prosecutors received a complaint that Kim Keon-hee, the wife of former Prosecutor General Yoon Seok-youl, was involved in the alleged stock manipulation case in Deutsch Motors.
Yoon was named the presidential nominee of the main opposition People Power Party earlier this month.
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