'1 Trillion Won Multi-Level Investment Fraud' AshSeven CEO Sentenced to 20 Years in 2nd Trial
[Asia Economy Reporter Kim Daehyun] The CEO of the cosmetics company Ash Seven, who carried out a multi-level investment fraud worth over 1 trillion won, was sentenced to 20 years in prison in the appellate court as well.
On the afternoon of the 27th, the Criminal Division 2 of the Seoul High Court (Presiding Judges Lee Wonbeom, Han Gisu, Nam Woohyun) sentenced Um Mo (58), the CEO of Ash Seven, who was indicted on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, to 20 years in prison, the same as the first trial. The Ash Seven corporation was fined 1 billion won.
Seven others, including regional headquarters chiefs who were indicted for conspiring with Um, were also sentenced to 6 to 11 years in prison, as in the first trial. However, four people including the vice chairman and directors of Ash Seven, who received prison sentences in the first trial, were given suspended sentences in the appellate court.
They are accused of embezzling approximately 1.2 trillion won in investment funds from about 7,000 victims over about six years from July 2015 to August last year. They deceived victims by promising "to pay 5% interest on the investment for four months and return the principal in the fifth month." It was also revealed that the company operated in a Ponzi-like manner, using new investors' funds to pay the promised dividends to existing investors.
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The first trial court stated, "The defendant, as the representative, planned and led the crime systematically and organizedly, and despite having no prior criminal record of the same kind, requires severe punishment." It also said, "The defendants who were headquarters chiefs were responsible for recruiting investors and had high access to company information, yet actively encouraged investments and have not shown remorse."
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