"High Returns from Unlisted Company Investments"... Police Launch Investigation into 100 Billion Won 'Ponzi Scheme' Ring

The police have launched an investigation into a group accused of embezzling large sums of investment funds using a Ponzi scheme.

Seoul Metropolitan Police Agency Mapo Office / Photo by Taewon Choi skking@

According to the police on the 21st, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency is investigating Mr. A on charges of unauthorized fundraising and fraud. Mr. A is accused of receiving investment funds by promising high returns through investments in unlisted stocks and then embezzling the money.

Mr. A increased the investment funds through a multi-level marketing method that paid commissions for bringing in investors. He also used a Ponzi scheme method, returning part of the profits to investors using funds from new investors. The currently identified damage exceeds 100 billion won.

Mr. A has been the CEO of investment advisory firm B since 2013 and is known to have invested in films. Two years ago, he acquired real estate-related company C and is reported to have persuaded high-net-worth individuals that they could generate profits through unlisted investments.

The Financial Intelligence Unit (FIU) detected large-scale fund transfers between the unregistered investment advisory firm C and Mr. A’s accounts and reported this to the police at the end of last year. Subsequently, as multiple complaints from victims claiming damages by Mr. A were filed simultaneously, the police began their investigation.

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