"Group Leader Arrested for Illegally Raising 'High-Profit Guaranteed' Investment Funds"

A man in his 40s who attracted illegal investment funds worth over 100 billion won from about 700 people by promising high returns has been arrested.

The Anti-Corruption Economic Crime Investigation Unit of the Gwangju Metropolitan Police Agency announced on the 29th that it had arrested Mr. A (42), the CEO of a certain group, on charges of quasi-deposit-taking activities (fraud under the Act on the Aggravated Punishment of Specific Economic Crimes).

Mr. A is suspected of engaging in quasi-deposit-taking worth approximately 113.2 billion won from 773 people between 2018 and 2021 under the pretext of issuing and distributing virtual assets, solar power generation projects, and smart farm sales businesses.

Mr. A operated the company with the group’s headquarters located in Buk-gu, Gwangju, and when he faced difficulties expanding the business, he illegally recruited investors.

He conducted investment solicitation activities through Naver Cafes and other platforms, promising investors principal guarantees and interest rates of 8 to 12% despite lacking the capability.

The police received complaints from victims in December last year and launched an investigation, proving Mr. A’s charges through a search and seizure of the group’s headquarters.

Additionally, during the investigation, they confirmed embezzlement of corporate funds by Mr. A and are conducting supplementary investigations.

A representative of the Gwangju Metropolitan Police Agency stated, "This case is a typical quasi-deposit financial crime that caused damage to ordinary citizens amid difficult economic conditions," and added, "Investment solicitations promising principal guarantees and high interest rates through the internet or SNS should be suspected as quasi-deposit-taking activities."

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