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Prosecutors raid Orion Group chief's house

Prosecutors have raided the house of the Orion Group chief in expanding their investigation into allegations that he spearheaded the formation of the group's slush fund, officials said Monday.

According to the officials, Orion Chairman Tam Chul-gon and his wife are suspected of ordering the formation of a slush fund and exploiting the money for personal uses.

Last week, prosecutors indicted a key executive of the group in a slush fund and embezzlement scandal gripping the nation's major confectionery and media conglomerate.

The amount of money involved in the charges totaled about 16 billion won (US$14.7 million), according to the officials.

The Orion executive was accused of creating 4 billion won in a slush fund via an illicit transaction of a luxury residence in 2006.

He was also suspected of evading corporate taxes of 1 billion won and laundering slush funds through dubious deals involving art pieces with Gallery Seomi, one of the nation's most prominent art galleries, according to prosecutors.

In addition, the executive was alleged to have incurred some

3.1 billion won in damage to Orion by selling an affiliate of the group in Hong Kong at a below-market price. (Yonhap News)