An appellate court on Thursday found a bankroller in the high-profile stock manipulation scheme involving first lady Kim Keon Hee guilty of abetting the offense, a decision expected to influence the related investigation into her.

The case centers on charges that Kwon Oh-soo, a former chairman of Deutsch Motors, a BMW dealer in South Korea, manipulated the price of the firm’s shares between 2010-2012 through illegal means, including sham transactions and the use of financial accounts under other people’s names.

Kwon allegedly colluded with stock manipulation operators, an investment consulting firm and executives at brokerage firms.

Thursday’s ruling has drawn keen attention as it could set the tone for the ongoing investigation into the first lady’s alleged involvement in the scheme.

Kim and another individual, surnamed Sohn, allegedly had their financial accounts used in the scheme, though they were not directly involved in the manipulation itself.

On Thursday, the Seoul High court overturned a distri
ct court’s previous decision to acquit Sohn and found him guilty of abetting the alleged manipulation. Sohn was sentenced to six months in prison, with the sentence suspended for one year.

“The defendant, although aware of the ongoing price manipulation of Deutsch Motors shares, participated by artificially creating stock purchases, thereby facilitating the manipulation by other defendants,” the court said.

The court said the manipulation resulted in damage to general market investors who were unaware of the manipulation.

The high court also sentenced Kwon to three years in prison, suspending the sentence for four years, while imposing a fine of 500 million won (US$372,939). It was heavier than the lower court’s two-year term, suspended for three years, and a 5 million-won fine.

Source: Yonhap News Agency