Lee Jay-hyun, chairman of CJ Group, a South Korean food and entertainment conglomerate, was indicted on charges of creating slush funds and evading taxes,
the
Global Post
reported.
Lee is a grandson of Lee Byung-chull, founder of Samsung Group, and a nephew of Samsung Electronics Co. chairman Lee Kun-hee. CJ Group was part of Samsung Group until 1997, the article said.
Lee, 53, was charged with tax evasion, embezzlement and breach of duty and was detained, the
Global Post
report said. He is accused of stashing secret funds to avoid taxes of about 54.6 billion won ($48.8 million) and misappropriating 96.3 billion won of corporate funds. Prosecutors also said he caused 56.9 billion won of losses to the group through the fraudulent purchase of two Tokyo buildings, according to the report.
The group set up seven paper companies and established a team in the chairman’s office to manage the family’s private assets, the article said.
CJ Global Holdings vice president Shin Dong-ki was also indicted on tax evasion charges, and three former and current executives were indicted as accomplices. Another executive who is in China was put on a wanted list, the report said.
Prosecutors are also investigating other allegations against Lee, including stock price manipulation, the article said. (Source:
Global Post,
July 18, 2013.)
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