64 People Including Cosmetics Company CEO Sent to Prosecution on Charges of Investment Fraud Worth Over 1 Trillion Won

[Asia Economy Reporter Lee Jung-yoon] Sixty-four people, including the CEO and company officials of a cosmetics company accused of raising over 1 trillion won in investments from investors while operating a business with unclear substance, have been sent to the prosecution.

According to the police on the 1st, the Songpa Police Station in Seoul arrested and sent to prosecution four people, including Um (age 57), the CEO of the cosmetics company Ash Seven, on charges of fraud, quasi-deposit-taking, and violation of the door-to-door sales law on the 27th of last month.

Additionally, 60 company officials were also charged with quasi-deposit-taking and violation of the door-to-door sales law and were referred to the prosecution without detention.

They are accused of raising about 1.2 trillion won from approximately 7,000 people over four months by promising to pay 5% interest on the investment for four months and return the principal in the fifth month.

Investigations revealed that the company attracted investors by pretending that a non-operational factory was a facility where actual cosmetics production took place and by fabricating that a famous celebrity was the model for their products.

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