Four People Including Cosmetics Company CEO Arrested on Charges of Investment Fraud Worth Over 1 Trillion Won

[Asia Economy Reporter Lee Jung-yoon] The CEO and executives of a cosmetics company who fraudulently raised investment funds worth over 1 trillion won have been arrested by the police.

On the 21st, the Songpa Police Station in Seoul announced that they had arrested Um Mo (57), the CEO of the cosmetics company Ash Seven, along with four executives on charges of fraud and quasi-deposit-taking.

They are accused of collecting about 1.2 trillion won from approximately 7,000 people by promising to pay 5% interest on the investment and to return the principal in the fifth month.

They also falsely claimed to have established a factory and fabricated that a famous celebrity was a model for their cosmetics.

A police official stated, "Currently, 36 company officials involved in the crime have been additionally booked, and the number of suspects is expected to increase further."