Key suspect arrested in suspected stock manipulation case

Prosecutors arrested Ra Deok-yeon, a key suspect in a recent case of suspected stock manipulation, at his residence Tuesday. He is suspected of manipulating the stock market for as long as three years, under the financial regulators' radar...

Ra Deok-yeon, a key suspect in an alleged stock manipulation case, talks to a news media outlet on May 1. [YONHAP]

Prosecutors arrested Ra Deok-yeon, a key suspect in a recent case of suspected stock manipulation, at his residence Tuesday. A joint investigation team comprised of prosecutors and financial authorities arrested Ra without a warrant around 10:25 a.m. and plans to file a warrant following their investigation.

Ra is suspected of manipulating the stock market for as long as three years, under the financial regulators' radar by engaging in price pumps.

He is accused of causing the stock crash on April 24 which resulted in eight stocks nosediving lower than the daily limit of minus 30 percent and some continuing to crash for up to four days.

Ra has been touring media outlets, claiming that he did not manipulate stocks, though he did design the entire plot, which he referred as "the secret" of the stock market that results in a must-win scenario.

BY SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]