Prosecutors Arrest and Indict Wealthy Son Who Embezzled 7.8 Billion Won and Fled Abroad

[Asia Economy Reporter Bae Kyunghwan] A man in his 30s who deceived victims by pretending that his wealthy father would provide a joint guarantee and embezzled over 7.8 billion won before fleeing overseas has been brought to trial in custody.

On the 22nd, the Criminal Division 4 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Noh Jinyoung) indicted former asset management company CEO Mr. A on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission.

From December 2016 to October of the following year, Mr. A promised victims the return of principal and payment of interest, embezzling 6.15 billion won. Additionally, despite lacking the ability to repay, he fabricated the appearance that his wealthy father would provide a joint guarantee and embezzled approximately 7.85 billion won from three victims. During this process, he also created false joint guarantee documents to reassure the victims.

Mr. A fled overseas in November 2017. Shortly after his escape, the prosecution received complaints from the victims and, considering Mr. A's flight abroad, suspended prosecution in February of the following year. Mr. A, who had fled overseas, was arrested upon his return late last month.

The prosecution has currently requested pre-indictment seizure of the profits obtained from Mr. A's unauthorized fund-raising activities. They are investigating further damages caused by Mr. A's crimes and plan to continue investigating additional offenses.

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