Police Request Arrest Warrant for CEO of Consulting Firm Suspected of 400 Billion Won Fraud

[Asia Economy Reporter Jeong Dong-hoon] The police investigating a consulting firm suspected of a multi-level marketing scam worth around 400 billion won have applied for an arrest warrant for the company’s CEO.

According to the police on the 26th, the Seoul Metropolitan Police Agency’s Violent Crime Investigation Unit applied for an arrest warrant on the 24th for Mr. Seo, a man in his 40s and CEO of a consulting company, on charges of fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission, and violation of the Door-to-Door Sales Act.

Mr. Seo is known to have established the consulting company in 2018 and traveled nationwide, attracting investors by promising “a guaranteed monthly return of 2% by investing in promising companies.”

As people began to report not even receiving their principal this year, the police launched an investigation and conducted a search and seizure of the company’s office in June. The police estimate that over the past three years, there have been 5,000 victims and the total damage amounts to 400 billion won.

The police applied to the court for seizure and preservation of criminal proceeds, freezing financial assets worth 9.3 billion won, and plan to confiscate and recover luxury imported cars and stocks as well.

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