Prosecutors Indict 5 More Executives of Cosmetics Company in Over 1 Trillion Won Investment Fraud Case

[Asia Economy Reporter Lee Jung-yoon] Five additional company officials have been indicted for allegedly embezzling over 1 trillion won in investment funds while pretending to be a successful cosmetics company.

On the 30th, according to the prosecution, the Seoul Eastern District Prosecutors' Office's Fair Trade and Economic Crime Division (Chief Prosecutor Min Kyung-ho) has arrested and indicted five regional heads of the cosmetics company AsheSeven on charges of fraud and quasi-deposit-taking.

Furthermore, the prosecution applied joint liability provisions to indict AsheSeven as well and, after confirming that four other affiliated companies were established for the purpose of embezzling investment funds, filed a petition for their dissolution under the Commercial Act. The prosecution plans to conclude the case through supplementary investigations of the remaining related parties.

Previously, the prosecution had arrested and indicted CEO Eom (57) and four executives, while four other company officials involved in the crime were indicted without detention.

From July 2015 to August of this year, they are accused of embezzling approximately 1.1492 trillion won from about 7,300 people by promising to pay a monthly profit of 5% through consignment sales and to return the principal after five months if they invested in the cosmetics business.

They also deceived about 2,700 people from September 2019 to December 2020 by claiming that AsheSeven was scheduled to be listed and promising to pay the principal and profits by issuing double the shares if preferred stocks were purchased, embezzling 48.5 billion won.

After AsheSeven's listing was canceled, they are also accused of embezzling about 13.2 billion won from around 280 people in January of this year by claiming plans to go public through another company via a backdoor listing. Additionally, from May 2019 to April this year, they induced about 4,800 investors to join an association and pay membership fees by stating that "to receive principal and profits from investing in the cosmetics business, one must join the association and pay the fee," embezzling approximately 5 billion won.

A prosecution official stated, "We will respond swiftly and strictly to various crimes causing widespread harm to ordinary citizens and will make every effort to recover criminal proceeds for substantial victim restitution."

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