Following the District Mayor's Daughter, the 'Haeundae Rich Family' Also a 15 Billion Won Fraudster... "Victims Are Crying"

A woman who was known as a 'major luxury goods spender' in Busan, carrying handbags worth over 300 million won, was revealed to be a fraudster involved in a scam worth around 15 billion won.

On the 31st of last month, JTBC's 'Case Manager' reported on the fraudulent activities of Ms. A, who was arrested last November and faced the maximum sentence of 15 years in prison for fraud. Ms. A is accused of embezzling approximately 15 billion won in investment funds by promising high interest rates to financially well-off acquaintances.

The informant, Mr. B, became close to Ms. A about 15 years ago while learning swimming together. The two developed a strong friendship, regularly meeting with acquaintances. Mr. B described Ms. A as "so wealthy that almost no one in the Haeundae area of Busan is unaware of her."

[Image source=JTBC 'Sageon Banjang']

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Later, Ms. A proposed to Mr. B to join a private equity fund, citing her connections with the chairman of a well-known domestic financial investment company. At the time, Ms. A explained, "My mother is invested in a fund that only investors with large amounts in a certain financial investment company can join, and investment deposits can only be made through my mother." Regarding the product, Ms. A reportedly said, "The principal and 14% interest are guaranteed, and if you notify three months in advance, the full amount can be refunded." Although skeptical, Mr. B invested 1 billion won and actually received interest payments for over three years.

Mr. B also said that he did not suspect fraud because Ms. A was famous as a 'Haeundae wealthy person,' carrying a top-tier Hermes handbag worth about 300 million won. In 2020, Ms. A encouraged Mr. B to "sell his house to invest," and Mr. B even broke his savings to invest a total of 5.7 billion won. However, when housing prices fell last year, Mr. B told Ms. A that he wanted to buy a house, after which Ms. A disappeared.

Ms. A collected about 15 billion won from multiple people in this manner and then vanished. It was later found that her mother was an ordinary self-employed person, and Ms. A did not even have a financial company account to which she had recommended investments to acquaintances.

According to police and prosecution investigations, Ms. A built trust with investors by paying interest for a certain period using a so-called 'Ponzi scheme.' Ultimately, Ms. A was arrested last November and faced the maximum sentence of 15 years for fraud. Mr. B expressed frustration, saying, "All the victims are suffering tremendous pain, with many undergoing psychiatric treatment. Meanwhile, this woman's family still lives a luxurious life, while we are struggling even to pay our children's tuition fees."

Separately, a former district mayor's daughter, who similarly defrauded about 15 billion won, was recently arrested in Busan and is set to stand trial. On the 31st, the Busan District Prosecutors' Office Eastern Branch Criminal Division 1 (Chief Song Young-in) indicted the former district mayor's daughter on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. From 2016 until last year, she reportedly scammed about 15.1 billion won from 20 victims under the pretext of high returns and squandered the money on luxury goods purchases, children's study abroad expenses, and personal living costs.

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