Prosecutors have requested a court to issue an arrest warrant for Sillajen CEO Moon Eun-sang on charges of using undisclosed information to sell his company stocks.
According to industry sources, the Seoul Southern District Prosecutors' Office pressed charges, on Friday, against Moon for violating the laws governing the capital market and financial investment. The Seoul Southern District Court is scheduled to review the request next Monday.
The prosecution said Moon avoided massive losses by selling large amounts of stocks using inside information on suspending the clinical trial of Pexa-Vec, an oncolytic viral therapy candidate for liver cancer. Prosecutors also suspect that Moon unfairly acquired a stake in the company without any capital by taking over bonds with warrants (BWs) through a paper company.
The company’s former CEO Lee Yong-han and Moon's relative, Kwak Byung-hak, have already been arrested for the same charges.
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