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Ex-Samsung chairman convicted in succession scam

The former chairman of Samsung, second-generation Lee Kun Hee (pictured), has been convicted of breach of trust over a bond deal carried out in 1999 that was aimed at transferring ownership of the group to his son.
 
The 67-year-old was given a three-year prison sentence that has been suspended for five years because of his contribution to Samsung's growth.
 
Lee was convicted at the Seoul High Court of selling convertible bonds at cut price to Lee Jae Yong causing the company $18 million in losses, according to the judge. He was also fined $89 million for causing the losses and evading taxes.
 
Lee stepped down from chairmanship of the family-controlled conglomerate last year after he was convicted of tax evasion. (Click here to read our coverage of the story) He was also tried for breach of trust but was found not guilty; however, the Supreme Court sent the case back to the High Court for reconsideration and the guilty decision was delivered on Friday.
 
Samsung is South Korea's largest conglomerate with revenues of $90 billion. Lee's father founded the company in 1938 and Lee joined in 1987, leading the company for 20 years until he stepped down last year. Lee's son Lee Jae Yong was cleared of all charges in the tax evasion case but it is still unclear if he will take up the head position at the business.

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