Samsung Electronics’s vice chairman Jay Y Lee sent back to prison
Three Samsung Electronics executives jailed in South Korea
A South Korean court on Monday jailed three Samsung Electronics executives for their role in a conspiracy that involved burying computers under factory floors at its biotechnology subsidiary. The company became the subject of an investigation of alleged accounting fraud.
The vice president of Samsung Electronics, who oversees the company’s funds, was sentenced to two years in prison, and two presidents of the Samsung Electronics working group were sentenced to one year and six months in prison, in accordance with a ruling issued by the Seoul Central District Court..
Prosecutors have previously demanded up to four years’ imprisonment for the accused leaders, saying: «The leaders of Samsung, known as the world’s leading company, have committed a massive crime that has caused enormous damage to our society … Despite committing a serious crime … they continue to make excuses, relying on the power of the big corporation behind them.», – sounded at the court hearings on October 28.
The episode is the latest legal challenge for South Korea’s main conglomerate, whose leader Jay Yi Lee is involved in a corruption scandal involving former President Park Geun-hye..
Prosecutors and financial market regulators suspect that Samsung BioLogics, a contract drug maker, increased its valuation by about 4.5 trillion won ($ 3.78 billion) in 2015 after a fraudulent change in the method used to calculate the value of its stake in the Samsung joint venture. Bioepis. American company Biogen Inc. after changing the accounting method Samsung BioLogics started to make a profit.
Prosecutors suspect the alleged change of signage could serve as a beneficial 2015 merger of the two Samsung divisions, thereby increasing the control of Samsung heir Lee Jae-young over the group..
Prosecutors have accused company executives of ordering employees of a biopharmaceutical firm to destroy and hide internal documents as authorities investigate allegations of violating accounting rules.
Criminal acts included the installation of nearly two dozen computers and laptops, as well as computer servers, in the underfloor spaces of Samsung Biologics factories near the capital city of Seoul..
«The audacity of the criminal acts of the accused was beyond the public imagination and overwhelmed society.», – said Judge Seo Byungsek when passing sentences.
«Most South Koreans want Samsung … to become the world’s top-tier company, contributing to the country’s economy, the judge added. – However, if such growth is based on violations and illegality, it will not be welcomed».
Samsung Electronics declined to comment, and Samsung Biologics were not available for comment..