[Exclusive] "300% Interest on Fruit Auction Investment" 60s Police Officer Caught After Pocketing 2.8 Billion Won

Mr. A Sent to Prosecution in Custody Last Month on 'Special Fraud Act' Charges
Promise to Pay Interest Up to 300%
Continuous Complaints Nationwide...Transaction Amount 200 Billion Won

[Asia Economy Reporters Jang Sehee and Hwang Seoyul] A woman in her 60s who deceived investors by promising up to 300% interest returns on fruit auction business investments and embezzled 2.8 billion KRW has been arrested by the police.

On the 20th, according to a comprehensive report by Asia Economy, the Seoul Gwanak Police Station sent a woman in her 60s, identified as Ms. A, to the prosecution under arrest on November 18 on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. Ms. A is accused of deceiving investors by promising principal and interest payments ranging from 10% to a maximum of 300% on fruit auction business investments and embezzling a total of 2.8 billion KRW.

It was confirmed that Ms. A returned about 3.9 billion KRW as principal and interest from the 6.7 billion KRW received from victims, and embezzled a total of 2.8 billion KRW.

The police began investigating after receiving complaints from multiple victims starting mid-May. Subsequently, on November 15, Ms. A was arrested on charges of fraud under the Specific Economic Crimes Act.

Ms. A induced investments by claiming that purchasing large quantities of fruit at auctions and reselling them in the produce market would generate profits. She reportedly based her fraud on the fact that fruit prices have risen sharply recently and that seasonal price differences are significant.

According to the police investigation, no evidence was found that Ms. A actually purchased any fruit. It was reported that she neither bought fruit nor had the financial capacity to pay the principal and interest. Ms. A continued her crime by using the money extorted from earlier investors to pay off others in a Ponzi scheme. Through this method, she built trust with victims and continued to inflate investment amounts.

Initially, Ms. A committed the crime mainly targeting acquaintances, but as those deceived informed their acquaintances and relatives, the damage expanded further. It is known that Ms. A avoided meeting most victims face-to-face to prevent being caught.

Because Ms. A aggressively solicited investments through acquaintances, additional damages are expected to increase. A police official stated, "Complaints from additional victims nationwide, including Seoul, are continuing," adding, "The transaction amount reaches about 200 billion KRW, so the number of victims is expected to keep rising."

The police emphasized the need to report fraud immediately to catch the main perpetrator. In this case, Ms. A reportedly persuaded victims not to report by claiming that she would be unable to return the principal if they did.

Meanwhile, if the amount gained from fraud exceeds 500 million KRW, the perpetrator is subject to aggravated punishment under the Specific Economic Crimes Act. If the gain is between 500 million KRW and less than 5 billion KRW, the penalty is imprisonment for three years or more.

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