Shin Arrested for Embezzlement, Likely Tied to LG Technologies Suit5 Nov, 2009 By: Jacqueline Renfrow Response This Week
TEMECULA, Calif. – Former LG Technologies (LG) business development leader Edward Shin was arrested on October 27 by Riverside County (Calif.) Sheriff’s officers on charges of embezzlement, in a case likely related to a civil complaint filed against him by the company on April 2. According to those previously in business dealings with Shin, he and perhaps some of his other business partners from various companies embezzled more than $1.1 million from the company.
Though Shin was the lead defendant in the complaint, filed in the Superior Court of the State of California for Riverside County (along with Chris Ryan Smith and their two businesses, LPS and The 800 Exchange), others named in the initial filing include Karen Shin, Iris Sunwoo, LeadPoint Inc., LeadPoint CEO Marc Diana, Breakwater Ventures, and Breakwater Ventures II.
Some of the 13 total counts in the civil filing include breach of contract, breach of loyalty, misappropriation of trade secrets, fraud, interference with prospective economic advantage, etc. LG also requested and obtained a restraining order from the court freezing certain bank accounts of Shin at the time of initial filing.
On Sept. 10, co-defendant LeadPoint fired another salvo at Shin, filing a cross-complaint “against Smith, Shin and their two businesses, LPS and 800 Exchange, which they formed primarily by exploiting resources and corporate opportunities which they had obtained while working for their former employers, LeadPoint and plaintiff LG Technologies of California, respectively.” The complaint continues: “Among other things, Smith and Shin, on behalf of and to benefit themselves and their companies LPS and 800 Exchange, stole money, forged bank account information, lied about the status of agreements with third parties, solicited LeadPoint’s clients and/or potential clients using its confidential and trade secret information, usurped LeadPoint’s corporate opportunities (which they learned of via such confidential information and trade secrets), and committed other acts giving rise to the claims asserted herein.”
In rebuttal to the initial civil complaint from LG, Shin filed a declaration in April that stated that the transfer of LG funds into his account was a mistake. “It appears that as a result of an error, LeadPoint mistakenly deposited LG funds into my personal/LPS account at US Bank. Each time I realized this had occurred, I repaid the money to LG via cashier’s checks. I am in the process of investigating how LG’s money was deposited in my account but was unable to determine the cause of the error by the time this opposition was due.”
No further information on the cases was available from the Riverside County Sheriff at this time. Calls for requests for comment from various interest parties by Response were not returned.