NH Investment advised to pay full compensation to some investors over hedge fund scandal
Posted : 2021-04-06 17:29
Updated : 2021-04-06 17:29
An arbitration panel of financial authorities has advised NH Investment Securities to pay full compensation to some investors over a hedge fund scandal, citing a mistake in contracts promoting the fund, officials said Tuesday.
Brokerage firm NH Investment has been under pressure to offer compensation as it promoted 470 billion won (US$417 million) of the fund managed by Optimus Asset Management, which is accused of wrongdoing and froze withdrawals due to liquidity problems.
The scandal surrounding Optimus Asset Management centers on allegations that the private equity company solicited funds worth a total of some 1.2 trillion won from thousands of people for investments in public institutions but actually funneled most of the money into risky assets, causing huge losses to the investors.