Five Executives of Cosmetics Company Arrested for 1 Trillion Won Investment Fraud... "Risk of Evidence Tampering and Flight"

[Asia Economy Reporter Lee Jung-yoon] Five executives of a cosmetics company accused of deceiving investors by portraying their business as highly profitable and raising about 1 trillion won have been arrested.

According to the court on the 19th, Shin Yong-moo, the judge in charge of warrants at the Seoul Eastern District Court, conducted a pre-arrest detention hearing for the suspects the day before and issued arrest warrants, citing "concerns of evidence destruction and flight risk."

The prosecution alleges that the suspects raised approximately 1.2 trillion won from about 7,000 people by promising to pay 5% interest on the investment for four months and return the principal in the fifth month, and they requested arrest warrants on charges of fraud and quasi-deposit-taking.

The five arrested executives are reported to be different individuals from the eight Ash Seven officials who have already been prosecuted. The prosecution previously arrested and indicted Ash Seven CEO Eom Mo (57) and four executives on the 11th, while four other involved parties were indicted without detention.