Deutsche Bank’s South Korean brokerage unit and one of its employees were convicted of manipulating share prices in November 2010, triggering a one-day rout that wiped out $23bn in value from the nation’s equity market.
Bloomberg News reports that the 43-year-old banker was sentenced to a five-year jail term and his employer, Deutsche Securities Korea, fined $12.4m, according to a ruling released Monday by Seoul Central District Court Judge Shim Gyu Hong. The employee wasn’t identified in court.
Deutsche Bank earned $37.2m from the trades, according to the verdict. The profits will be collected by the prosecution, according to the ruling.
'Deutsche Bank respectfully acknowledges the court’s decision regarding its Korean subsidiary', Michael West, a Hong Kong-based spokesman for the parent company, said in an e-mailed statement. 'Deutsche Bank has strengthened its systems and controls and is committed to compliance with applicable laws and regulation in all jurisdictions and to making a positive contribution to the development of Korean financial markets'.
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