"CEO Who Raised Investment Funds by Reselling Returned Goods for Profit Arrested"
Deceiving Investors by Promising High Compound Interest Returns
The CEO of a company who recruited investors by claiming to resell returned items online overseas and share the profits has been arrested.
On the 16th, the Dongjak Police Station in Seoul announced that they had arrested Mr. Lee, the CEO of Company A, on the previous day on charges of fraud and unauthorized fundraising activities.
Mr. Lee is suspected of deceiving investors since February by promising to share profits generated from selling returned goods overseas and paying high returns equivalent to compound interest.
He held investment briefings in Seoul, Busan, Gwangju, and other locations to attract investors. Approximately 30,000 investors have been identified so far, with reported damages amounting to 500 billion KRW.
Company A halted profit withdrawals in June, citing hacking as the reason, and Mr. Lee has since been out of contact.
His company gathered many investors in a short period through a multi-level marketing scheme, paying a portion of the investment funds as profits to those who brought in new investors.
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The police are investigating additional damages and are conducting further inquiries into affiliated companies of Mr. Lee’s firm, where the investment funds are believed to have flowed.
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