After leaving his job at an investment-related company, the client opened an open chat room to follow up with about 10 clients he had managed. Later, he opened another open chat room with the intention of doing business after registering as a pseudo-investment advisory business. Although the client did not engage in any activities such as stock recommendations in the above two chat rooms, it was alleged that the client provided investment advice without registering as a pseudo-investment advisory business and received compensation. Violation of the Act on Capital Market and Financial Investment BusinessThe case was filed and proceeded.
Case issues
The client had recommended stock picks to about 10 people, but it was a follow-up to the work he was doing before he left the company, and he never made stock picks in the public open chat room. The issue was whether the client had given investment advice to an unspecified number of people and whether he had received payment from the 10 people.
Troubleshooting issues
Ongang Law Firm's defense team argued in the defense brief that the open chat room was operated under the concept of managing the business of the company where the client previously worked, that it was not investment advice to an unspecified number of people, and that the client was not paid by any of the people in the two open chat rooms through the client's account details.
In the end, the client was dismissed (no charges) and went back to his normal life.
