South Korean political figures were cleared of any involvement in the nation’s high-profile 1.6 trillion won ($1.4 billion) hedge fund fraud, which centers on the effectively defunct private equity firm Optimus Asset Management, prosecutors announced Sunday.

The Seoul Central District Prosecutor’s Office said that it had dismissed charges Wednesday against three ex-Optimus advisers of accepting property through arrangement and assisting fraudulent activities. They are Lee Hun-jai, a former finance minister; Yang Ho, a former chairman of US-based Nara Bank; and Kim Jin-hoon, a former chief of the Military Mutual Aid Association.

Another Optimus adviser, former Prosecutor General Chae Dong-wook, was not indicted and was not a target of its investigation, the prosecution added.

The same was true for former Justice Minister Lee Kwi-nam, who was at one time suspected of helping a runaway ex-Optimus official.

Prosecutors said there was not enough evidence to prove that they were involved in the financial scam and Ponzi scheme perpetrated by Optimus.

A document implicating the advisers, obtained in a probe, lacked credibility and contained exaggerations, added prosecutors after a yearlong investigation that began in September last year.

This is the latest development in what is considered one of the largest financial frauds in the nation’s history. It has created widespread public distrust toward private fund products distributed to individuals since 2020.

Optimus pooled a combined 1.6 trillion won from April 2018 to June 2020, ostensibly to invest in trade receivables associated with state-led projects, according to the prosecution.

Optimus violated its contracts, deceiving fund sellers and using the pooled money to finance real estate development projects not related to state-run corporations and to acquire listed companies in poor financial health, among other purposes.

The prosecution has frozen 420 billion won worth of Optimus assets thus far.

The alleged connections between Optimus officials and political figures had generated speculation that their political influence could have allowed perpetrators to cover up financial crimes.

In April, the prosecution cleared presidential hopeful Lee Nak-yon of Optimus-related suspicions, though one of his aides had allegedly taken bribes from an Optimus lobbyist. The aide died by suicide in December amid the investigation.

The prosecution said Sunday that it had so far indicted 32 people on various charges connected to the fraud case. One of those who has been indicted is the wife of an Optimus board member and a former government official who once worked at the presidential office. She is accused of bribery and leaking confidential information.

Former Optimus Chief Executive Officer Kim Jae-hyun was sentenced to 25 years behind bars, fined 500 million won and levied 75.2 billion won in additional collection charges in a district court ruling in July.

In July after the ruling, the Financial Supervisory Service, a financial watchdog, recommended the revocation of Optimus’ license. The Financial Services Commission, which regulates the finance industry, will review the case and make a final decision.

So far, the fund scandal has inflicted financial damage on over 3,000 individuals.