Seoul Central District Prosecutors’ Office said it indicted Lee Chang-suk, 50, without physical detention for not handing over a 40 percent stake in the ball club to a Korean-American businessman that he had promised in return for 2 billion won ($1.8 million).
The prosecutors also indicted Namkoong Jong-hwan, the general manager of the Heroes, without physical detention, for aiding Lee.
Lee approached Hong Sung-eun, chairman of the Atlanta-based real estate developer Rainier Group, to invest the money in exchange for a stake in baseball club Nexen Heroes.
However, Hong didn’t receive his share and he filed a petition against Lee with prosecutors in May. Investigators then raided the home and office of Lee, and also placed him under an overseas travel ban.
The two executives inflicted financial losses worth 1.7 billion won on the company by receiving excessive bonuses from their advertisement deals. They also lent 200 million won without collateral to a businessman for opening a hostess bar, according to the prosecutors.