On the rescission of contract and demand to return all of the investment losses of the Lime fund
About this case and its progress
This case is for investors to seek civil and criminal liabilities against companies, asset managements, trust companies and related parties in relations to the suspension of redemption in large scale of the Lime fund.
- ※ Applicable fund (or related fund)
: Lime Funds managed by Lime’s asset management which were sold by the following vendors
- Woori Bank
- Samsung Securities Co.,
- Korea Investment & Securities Co.,
- Yuanta Securities Co.,
-Meritz Securities Co.,
-KB Securities Co.,
-Mirae Asset Securities Co.,
-Hanwha Investment & Securities
-Shinhan Investment Co.,
-BNK Kyongnam Bank
-Kiwoom Securities Co.,
-KEB Hana Bank
-NH Investment & Securities Co.,
-Korean Development Bank
Pluto FI D-1
Lime Funds invested in domestic private equity
Credit Insured I Lime Funds invested in foreign trade finance bond
-Top 2 Balance
-RepoPlus and other 110 funds
-Thetis and other 21 funds
-Trade Finance Balance
-Global trade finance
-Global Eye New trade finance and other 38 funds
Trade Credit Insured and other 16 funds
We see that Lime Asset Management had deceived investors by projecting as if the funds were managed under control despite its insufficiency and grounds to suspend redemption in order to secure repayment for mature funds, which construes as mis-selling to allure investors, negligence of fiduciary and oversight in managing investment property as well as fraud, embezzlement, breach of trust by criminal law and unfair trading by capital markets act.
We at Hannuri has previously analyzed that the case of the Lime Trade Finance Fund is a case of fraud with regards to investment target, projected returns and much more, where investors can exercise the right to rescind their investment contracts. We announced such findings on December 31, 2019, filed criminal complaint against related parties on behalf of investors on January 10, 2020, and has endeavored to disclose the truth and gravity of this case.
The Financial Supervisory Service also announced on February 14, 2020 in press release that the Lime Trade Finance Fund had concealed insolvency of the fund and thus will examine a dispute resolution of making the investment contracts void under declaration of intent under mistake. We believe such announcement to be encouraging as it acknowledges and sits alongside our legal analysis.
As such, we will take following legal steps on behalf of investment fraud victims of the Lime Fund in order to fully recuperate and compensate investment losses:
(1) File additional criminal complaints and accusations against related parties to further disclose the truth of the case
(2) Request a dispute resolution through the Financial Supervisory Service
(3) Proceed civil lawsuits and take other necessary legal strategies (for the return of unjust enrichment and compensation for damages as a result of void contracts)
However, it is limited to the Lime Trade Finance Fund among all Lime Funds that the FSS announced to evaluate to void investment contracts on the basis of concealment and fraud. The FSS stated that other funds are merely a case of unsound management of investment funds and will establish facts shortly.
At this rate, it seems likely that the case of other Lime Funds is concluded as mere mis-selling, reducing the amount of compensation for damages and rescinding contracts practically impossible.
Therefore it is urgent to investigate and disclose facts of these three other Lime Funds so that investment fraud victims of these funds can also secure the same means of relief as those of the Lime Trade Finance Fund.
As this will require thorough analysis, bullet-proof legal reasoning, and sound evidence, we plan on filing criminal complaints and accusations against related parties (comparable to that of the Lime Trade Finance Fund) in mid March.
As criminal complaints and accusations must be filed under the name of victims, we will only be able to proceed on behalf of those who participate in this lawsuit by Friday, March 6.