Prosecutors investigating alleged corruption by the elder brother of late President Roh Moo-hyun said Friday they found tens of billions of won in a bank account apparently owned by his wealth manager.

Roh Geon-pyeong, 70, is being investigated for embezzlement and influence peddling allegations. He remains in custody since Tuesday for questioning at the prosecutors’ office in Changwon.

The bank account is believed to be owned by Roh’s financial manager and the bulk of the money was used for three years through May 2008, said Lee Joon-myung of Changwon District Prosecutors’ Office. He did not reveal the exact amount.

Prosecutors plan to look into the account and question Roh over the source of the money, Lee added.

The fund, however, “has nothing to do with the former president or his children,” he told reporters in Changwon, South Gyeongsang Province.

Chung Jae-sung, Roh’s attorney, rebutted the claims, saying he would sue Lee.

“It is abnormal for the prosecution to make alleged crimes public during the investigation process,” Chung said.

The allegation surfaced as prosecutors investigate whether he embezzled 875 million won ($763,000) of company funds. The money is believed to be part of the proceeds of a real estate transaction made by KEP, an electrical component maker in Daegu set up by his acquaintance surnamed Lee.

Roh is also suspected of having received 940 million won in return for helping a land developer win a license to reclaim land in Tongyeong, South Gyeongsang Province, in 2007 while his younger brother was in office.

In 2008, Roh was sentenced to two years and six months in prison with a 300 million won fine for illegal business dealings in 2006. He was released in August 2010 under a presidential pardon after serving about 20 months.

By Shin Hyon-hee
(heeshin@heraldcorp.com)