'440 Billion Won-Scale Fraudulent Fundraising' 3 CEOs of Ado International Affiliates Sentenced to Prison in First Trial

Three Sentenced to Prison...
"Numerous Victims Created in a Short Period"
Another Affiliate Representative Receives Suspended Sentence

Three representatives of Ado International affiliates, who were indicted for illegally raising funds amounting to about 440 billion KRW, were sentenced to imprisonment in the first trial.

On the 18th, Judge Kim Ji-young of the Seoul Central District Court Criminal Division 25 sentenced Park, who was charged with fraud, to 10 years in prison and ordered a confiscation of 6.67 billion KRW. Another affiliate representative, Ahn, who conspired with Park and participated in the crime, was sentenced to 10 years in prison and a confiscation of 3.32 billion KRW, while Son was sentenced to 9 years in prison and a confiscation of 2.76 billion KRW.

The court stated, "The defendants deceived and embezzled by falsely inflating the status of 16 business entities targeting numerous victims," adding, "Such acts undermine sound economic order and produce many victims in a short period, thus warranting severe punishment."

However, another affiliate representative, Choi, was sentenced to 3 years in prison with a 5-year probation, as it appeared he did not have definite intent. The court explained, "He admitted the charges and showed remorse, and it does not seem he proceeded with definite intent," further noting, "His involvement period was not long, and the victims do not wish for punishment."

They were indicted on charges of conspiring with Lee, the representative of Ado International, to embezzle approximately 36 billion KRW through about 8,400 instances of investment fraud and participating in about 140,000 instances of illegal fund-raising amounting to approximately 440 billion KRW.

Illegal fund-raising refers to so-called "multi-level marketing" where funds are raised from unspecified many people by promising principal protection without the necessary permits, registrations, or notifications under the law. If it is proven that money was received despite no possibility of repayment, fraud charges apply.

Meanwhile, Lee, the representative of Ado International, was sentenced to 15 years in prison in the first trial last July for leading the illegal fund-raising crime.

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