"Investment Guarantees Triple Principal" Fraud Gang Stealing 1 Billion Retirement Funds Arrested

A gang that deceived elderly people by promising to pay 2 to 3 times the principal if they invested in bringing in overseas funds was caught after embezzling a total of 1 billion KRW in retirement funds.

On the 23rd, the Seoul Gwanak Police Station announced that they had arrested three people in their 50s, including Mr. A, on charges of fraud and violation of the Act on the Regulation of Similar Receipt of Funds, and detained one ringleader among them.

According to the police, from July 2021 to December last year, Mr. A and others deceived 11 elderly victims by claiming, "If you invest in the fees required to bring in a donation of 10.5 million USD deposited at the B Bank Senegal branch to Korea, we will pay you 2 to 3 times the principal," and embezzled a total of over 1 billion KRW in retirement funds from the victims.

Upon recognizing the case, the police formed a dedicated team of seven investigators from the Intelligent Crime Investigation Team to conduct the investigation. Although Mr. A and others denied all charges, through a search of their office, the police uncovered that they never had any overseas funds to bring into the country from the beginning.

Even while the police investigation was ongoing, Mr. A and others continued to commit investment fraud using the same method. Furthermore, when a detention warrant was requested for the ringleader Mr. A on the 2nd of last month, he fled by removing his belongings from his residence. The police apprehended Mr. A, who had been in hiding, on the 15th through CCTV analysis and tracking the location of his mobile phone.

The police advised caution against typical methods of similar receipt and investment frauds that promise principal guarantees and high returns, as seen in this case. Specific tactics include ▲guaranteeing high returns far exceeding financial institutions' deposit and savings interest rates ▲claiming principal guarantees or financial institution payment guarantees under the pretext of acquiring various rights from foreign governments, FX margin trading, or technology development.

If you receive investment offers from companies with unclear substance, it is important to first verify whether the company is registered with financial authorities by using the regulated financial company inquiry service on the Financial Consumer Portal (fine.fss.or.kr).

The police stated, "There are many cases where investments are induced through difficult terminology or unverifiable lies, so if you have any suspicions, you should contact the police or the Financial Supervisory Service. If damage occurs, be sure to secure evidence such as recordings, text messages, and contracts, and report promptly to the police."

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