Selling Fake P2P Loan Products in 50 Billion Won Fraud... Police Detain and Send 2 Suspects to Prosecution

[Asia Economy Reporter Yoo Byung-don] A group that posted false investment products online and swindled more than 50 billion won has been sent to the prosecution.

On the 26th, the Yeongdeungpo Police Station in Seoul announced that two individuals, including Mr. A, were recently sent to the prosecution under arrest on charges of fraud.

They are accused of posting false P2P loan products on an internet website from May 2019 to September 2020 to attract investors and then committing fraud. P2P loans involve collecting investment funds from an unspecified number of individuals and lending them to individuals or businesses (borrowers) in need of money. The companies must disclose the loan purpose, presence of collateral, loan repayment plan, and expected rate of return on the website.

According to the police investigation, a total of 895 investors were deceived by them, with the total damage amounting to approximately 50.6 billion won.

A police official stated, “This is a Ponzi scheme-like operation involving a rollover method,” and added, “It is expected to be difficult to recover the damages.”

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