"51 Stock Fraud Gang Members Arrested Ahead of IPO... Boss is a Gangster"

The police have arrested 51 members of an investment fraud ring that deceived victims by pretending that unlisted stocks were confirmed for listing, embezzling about 11 billion KRW. It was confirmed that the ringleader of the fraud ring was a member of an organized crime group.

Cash and precious metals seized from Mr. A, the ringleader of an investment fraud group who deceived investors by selling unlisted stocks as if they were confirmed for listing / Photo by Seoul Metropolitan Police Agency Violent Crime Investigation Unit

On the 12th, the Violent Crime Investigation Unit of the Metropolitan Investigation Division of the Seoul Metropolitan Police Agency announced that they had arrested 51 people, including Mr. A, the ringleader of the investment fraud crime group and a member of an organized crime group, on charges of organizing a criminal organization and unregistered business activities under the Capital Markets Act. Among them, 11 were detained. They defrauded 864 people of approximately 11 billion KRW.

The police seized about 700 million KRW in cash and precious metals from them and preserved assets such as real estate and deposit claims to confiscate about 2.7 billion KRW in criminal proceeds. Additionally, they have applied to preserve confiscation of criminal proceeds worth about 900 million KRW.

Mr. A and others are accused of using personal information collected from previously operating stock leading chat rooms to lure victims on social media (SNS) by impersonating professional investment companies such as 'OO Economic TV,' then deceiving and selling unlisted stocks with no listing plans as if their listing was confirmed.

The police received intelligence about an unlisted stock fraud group involving organized crime and launched an investigation. Subsequently, they consolidated complaints received nationwide and conducted a focused investigation.

According to the police, Mr. A and others organized a criminal group for unlisted stock fraud by dividing roles such as ringleader, stock supplier, headquarters chief, and team leader. To prepare for police arrests, they communicated and gave instructions via Telegram and used aliases, proxy bank accounts, and burner phones.

Also, when another organization tried to poach Mr. B, a headquarters chief-level suspect who had good sales records in unlisted stock sales, Mr. A, an organized crime member active in Bucheon, threatened a member of the rival organization with a weapon, was arrested in flagrante delicto, and booked. Some suspects were also found to have used drugs such as marijuana.

The Violent Crime Investigation Unit of the Seoul Metropolitan Police Agency stated, "In difficult economic conditions due to high inflation and rising interest rates, we will eradicate financial crimes that infringe on the livelihood of ordinary people, especially those linked to organized crime, and respond strictly to financial crimes connected to gangs." They added, "If investors are recruited in internet cafes or KakaoTalk open chat rooms promising high returns, it is highly likely to be an investment fraud crime, so caution is advised."

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