Gang of 'Tteotdabang' Scammers Targeting Elderly Arrested for Selling 100,000 Won Items at 780,000 Won...
Over 1,700 Victims
Severely Disabled and Train Recipients Also Affected Victims
A group operating a 'tteotdabang' targeting the elderly and selling health functional foods at prices higher than the official price, defrauding 6.5 billion won, has been arrested.
According to Yonhap News on the 16th, the Jeju Autonomous Police Unit arrested three people, including Mr. A, a man in his 40s who is the general manager of a health functional food sales company, on charges of illegally gaining profits by falsely advertising general foods as medicines and selling them at high prices (violations of the Pharmaceutical Affairs Act and the Health Functional Foods Act).
From November 2021 to last May, Mr. A and others operated two promotional centers for health functional foods and other processed foods in the Jeju area, falsely and exaggeratedly advertising the products as medicines effective for preventing and treating various diseases, and sold the products at expensive prices.
Various processed foods and health functional foods sold at 'tteotdabang'.
[Image source=Jeju Autonomous Police Agency·Yonhap News]
In this process, Mr. B, a man in his 40s and the manager of the second branch, directly sold the products, and Mr. C, a man in his 50s and the representative of the second branch, took on the role of preparing for inspections by the relevant authorities to ensure smooth business operations for Mr. A and Mr. B, who are from other regions.
Investigations revealed that they sold products priced at 60,000 won per unit for 480,000 won and products priced at 100,000 won for 780,000 won to about 1,700 people, generating total sales of 6.5 billion won.
They also falsely claimed that stopping prescribed hospital medications and consistently taking the products they sold would cure diseases. Furthermore, when victims complained of side effects after taking the products, they deceived them by saying these were temporary reactions due to health improvements, inducing continued purchases. It was also revealed that they did not dispose of expired products but provided them as samples.
In particular, they allowed elderly people who could not afford to purchase the products to take them first, then made them sign payment agreements for the outstanding amounts, which were subsequently transferred as claims to loan companies. Among these victims were confirmed to be severely disabled persons and basic livelihood security recipients.
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The Jeju Autonomous Police Unit, in cooperation with the Jeju District Prosecutors' Office, secured evidence to prove the charges. Besides the three arrested, 13 other members of the organization and promotional instructors, who were relatively less involved in the crimes, are planned to be sent to prosecution without detention.
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