"To Be Listed Within 2-3 Months"... All Members of a Gang Who Embezzled 3.6 Billion Won Through Unlisted Stock Investment Fraud Arrested

Gang of perpetrators who swindled 3.6 billion KRW through unlisted stock investment fraud / Provided by Seoul Gangbuk Police Station

[Asia Economy Reporter Gong Byung-sun] A group that swindled 3.6 billion won through unlisted stock investment fraud by claiming the stocks would be listed within 2-3 months has been arrested by the police.

On the 18th, the Gangbuk Police Station in Seoul announced that they had arrested all 15 members of the group, including the head of the investment company, Mr. A, on charges of organizing a criminal group and violating the Capital Markets Act. Among them, four were sent to prosecution in custody, and 11 were sent without detention.

They are accused of inducing investments by claiming that investing in unlisted stocks to be listed within 2-3 months would yield profits of about 4 to 5 times, and then embezzling the money. From November last year to May this year, they disguised themselves as a professional investment trading company and used burner phones and aliases. Furthermore, roles such as the head, accounting manager, TM training manager, and team leader were systematically divided within the organization.

They extorted investment funds from victims using two companies. When the listing of the unlisted stocks they promoted at the end of February this year was imminent, they closed the company and disappeared. Afterwards, they established a new ghost company and continued the investment fraud. It was investigated that they embezzled 3.6 billion won from about 190 victims through this method.

The police applied for a "pre-indictment seizure preservation warrant" worth about 1.5 billion won to prevent further damage. Pre-indictment seizure preservation is a measure that prevents the disposal of assets to collect an amount equivalent to the profits obtained by the suspect through the crime if those profits have been used. The Seoul Northern District Court approved this.

A police official stated, "We are continuously collecting intelligence related to organized investment fraud not only involving unlisted stocks but also cryptocurrencies," and added, "We will track and eradicate organizations conducting fraudulent activities."

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