Optional Capital v. DAS Corp. CA2/1

BACKGROUND

A. Misappropriations and Transfers 1. Misappropriation from DAS In 2000, Kyung Joon Kim and others controlled BBK Investment Advisors Co. Ltd., an investment fund with substantial investors, and MAF Fund, a related entity. DAS, a Korean corporation that manufactures and distributes auto parts, invested approximately $19 million in

BBK.

In 2001, DAS demanded that Kim return its invested amounts. Kim returned approximately $5 million, but then stopped responding to DAS’s letters and calls demanding repayment of the remaining $14 million. 2. Misappropriation from Optional In April 2001, Kim and others purchased a little over 50 percent of New Vision Venture Capital Company Ltd., a defunct, insolvent Korean venture capital firm that later became known as Optional Capital, Inc.

3 Also in 2001, Kim falsified corporate charters for fictitious companies and opened bank and securities accounts in their names. He used New Vision/Optional to funnel funds acquired from others, transferring approximately $38.6 million from the falsified entities into Optional’s accounts in exchange for corporate stock issued to himself. Kim then deposited funds taken from Optional into…