Koo Ja-doo, chairman of venture capital firm LB Investment, received a suspended prison term for fabricating bank statements to close accounts he maintained under other people’s names, a court said Wednesday. 

The Seoul Central District Court sentenced Koo, the fourth son of LG Group Founder Koo In-hoi, to one year in prison, suspended for two years, on charges of fabricating documents.

Koo had a total of 281 bank accounts under the names of foreign students in Seoul who received scholarships from him. He held up to 5 billion won in personal funds in those accounts between 1999 and 2012.

In 2012, in the process of closing some of the accounts under the borrowed names, Koo fabricated 39 bank account closure papers.

Established in 1996, LB Investment was formerly known as LG Venture Investment and separated from LG Group in 2000.

By Ock Hyun-ju (laeticia.ock@heraldcorp.com)