"High-Yield Investment in Insurance Products"... CEO of Insurance Brokerage Firm and Others Indicted for Embezzling Over 130 Billion Won

[Asia Economy Reporter Lee Jung-yoon] A group that swindled 127 billion KRW through a scam disguised as insurance product investment has been brought to trial.

On the 23rd, the Seoul Eastern District Prosecutors' Office Fair Trade and Economic Crime Division (Chief Kim Hyung-joo) announced that it had arrested and indicted three suspects involved in a fraudulent quasi-collecting scheme who embezzled approximately 127 billion KRW from 1,751 victims under the pretense of insurance-related product investments, and indicted one suspect without detention on charges of fraud, quasi-collecting activities, and violations of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).

According to the prosecution, the CEO of an insurance brokerage company, A (43), co-founders B (46) and C (43), and Strategy Director D (44) are accused of deceiving victims from January 2012 to July of this year by saying, "We will receive investment funds, enter into insurance contracts, and after the mandatory holding period has passed, cancel the insurance and pay the principal, interest, and part of the insurance brokerage commission," thereby obtaining investment funds.

However, contrary to their promises, they used a significant portion of the investment funds for Ponzi-like repayments, stock investments, overseas business operations, and travel expenses for affiliated insurance planners. Approximately 60 billion KRW of the damages have yet to be recovered.

Additionally, over the past 10 years, by operating multiple insurance brokerage companies, they entered into insurance contracts, and after the mandatory holding period of 12 to 24 months passed, canceled the contracts to collect insurance brokerage commissions and early cancellation refunds from insurance companies, causing financial instability for the insurers, the prosecution stated.

Following an investigation request from the Financial Supervisory Service in July, the Seoul Songpa Police Station conducted a search and seizure of the company office within six days, resulting in the arrest and indictment of CEO A and co-founders B and C, and the indictment without detention of Strategy Director D.

The prosecution stated, "We plan to seek confiscation of 19.5 billion KRW in illegal profits from the defendants," and added, "We will strictly respond to fraudulent quasi-collecting crimes that cause widespread harm to ordinary citizens."

This content was produced with the assistance of AI translation services.