'Recruiting Mark Zuckerberg's Sister' False Disclosure... KOSDAQ-listed Company CEOs Sentenced to Prison

[Financial News] Former CEOs of a KOSDAQ-listed company have been sentenced to prison in the first trial for making false disclosures, including claims of recruiting Mark Zuckerberg's sister, in an attempt to boost their company's stock price.
On the 28th, the Criminal Agreement Division 13 of the Seoul Southern District Court (Presiding Judge Kim Sang-yeon) sentenced former co-CEO A (49) of isMedia Inc., who was charged with violating the Financial Investment Services and Capital Markets Act (FSCMA), to two years and six months in prison and a fine of 100 million won. B (60) was sentenced to two years in prison and a fine of 100 million won.
The court stated, "The defendants misled investors, undermining the transparency and fairness of the capital market and affecting investor trust. As a result of their crimes, isMedia Inc. suffered irreversible business deterioration, ultimately leading to its delisting."
A was brought to trial on charges of making a false disclosure in February 2021, claiming to have acquired isMedia Inc. with his own capital when it was actually a no-capital acquisition. B was indicted for making a false disclosure about appointing Randi Zuckerberg, Mark Zuckerberg's sister, as an outside director.
isMedia Inc. filed for an injunction to suspend the effect of its delisting decision in October 2023, but the request was dismissed in June last year.
welcome@fnnews.com Jang Yu-ha Reporter