[Asia Economy Reporter Lee Jung-yoon] The police have booked the CEO and executives of a cosmetics company on charges of running a multi-level financial fraud scheme.
According to the police on the 10th, the Songpa Police Station in Seoul booked the company’s CEO, Mr. Eom (57), and 10 executives on charges of fraud and illegal fundraising.
They are accused of operating the company for eight years since 2014 and conducting multi-level fraud targeting thousands of investors.
They reportedly attracted about 5,000 investors by promoting a business model that promised a 5% commission on the investment amount for four months and a return of the principal after five months. However, the company stopped payments in April due to worsening management conditions. The damage is estimated to reach 1 trillion won.
The police conducted raids on the company headquarters and the CEO’s residence and imposed a travel ban on them. They also plan to confiscate and recover the criminal proceeds.
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