Lee's relative under probe in fraud case

WONJU (Yonhap) - A distant relative of President Lee Myung-bak is under a prosecutors' probe on charges of swindling money using his family connection with the president, police said Wednesday.
The police station in Wonju, 132 kilometers southeast of Seoul, said it had questioned the man surnamed Hwang over the charges and sent the case earlier this month to prosecutors for a potential indictment.
The man, a younger brother of first lady Kim Yoon-ok's brother-in-law, is under charges of not paying back 70 million won (US$59,803) he borrowed from his former schoolmate, named Park, and investing the money in an illegal gaming business, according to the police.
The investigation came one day after the president called for stern handling of any corruption allegations that are raised against his close aides and relatives.
Lee made the call during a Cabinet meeting before a former presidential spokesman was arrested on charges of taking bribes from an ailing savings bank's lobbyist. A former culture vice minister is also facing suspicion of accepting a massive amount of bribes from a disgraced businessman.
Earlier this month, reports said that a cousin of the president was under investigation on suspicion of swindling 300 million won out of his acquaintances.
According to the Wonju police, Hwang borrowed the money from July last year to March this year, using his relation with the president. A police investigation found he invested the money in illegal gaming in breach of the local law regulating the gambling industry, the police said.
Hwang failed to deliver on his promise to pay Park back, who filed a lawsuit in July.
"Hwang is now being interrogated by prosecutors. He is likely to be indicted and punished with a fine," a police official said.