LAKS CO.,LTD is now in the center of a huge scandal with the involvement of fraud. This firm owns a large hotel called Mega Palace Hotel on the Sakhalin Island.
As it turned out the former CEO of hotel Shin Deng Choel appropriated the 17.28% of stakes of LAKS CO.,LTD. He captured in illegal way the shares belonging to partners from South Korea. Shin used the fact that he was their representative in Russia.
He forged documents to figure as the owner of 50% of shares of LAKS CO.,LTD, then Shin took 40 millionth loan in Kookmin Bank leaving Mega Palace Hotel in pledge.
When the true owners of the company found out the fraud and refused to pay for the stolen money Shin used some help of his friend Choi Kyoung-Duk for raider seizure of hotel. They kept it under their control for a long time in order to bring hotel to the complete bankruptcy.