Three People Including Company CEO and Director Detained
Seventy-five people, including Mr. A, the CEO of a real estate consulting firm, were arrested by the police for embezzling more than 27 billion won in deposits through a canned jeonse scheme.
According to the Dongdaemun Police Station in Seoul on the 21st, they are accused of owning about 400 villas in the metropolitan area from July 2020 to December last year and failing to return deposits totaling 27.7396 billion won to 125 tenants.
The police have detained three people, including CEO Mr. A and director Mr. B of the company, and are investigating 72 others, including employees and straw purchasers, without detention.
Mr. A and Mr. B reportedly borrowed the name of a licensed real estate agent to establish real estate brokerage and consulting firms in Gwanak-gu and Yeongdeungpo-gu, Seoul, and increased jeonse contracts by paying bonuses to employees based on their performance.
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