The CEO of a construction company who defrauded real estate investment funds by promising high returns has been handed over to the prosecution.
The Anti-Corruption Economic Crime Investigation Unit of the Gwangju Metropolitan Police Agency announced on the 27th that they have arrested and sent CEO A (48) of S Construction to prosecution on charges including violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission.
Between 2020 and 2023, Mr. A is accused of illegally attracting 353.4 billion KRW from 852 victims by recruiting investors with the promise of constructing a large-scale commercial building in Changwon, Gyeongnam, and defrauding approximately 22.9 billion KRW.
Investigations revealed that Mr. A accepted investments by promising high returns despite being unable to proceed with the real estate sales project normally.
Additional complaints are being filed, and the amount of damages is expected to increase.
The police are conducting supplementary investigations into Mr. A’s embezzlement of corporate funds, tax evasion, and whether other employees involved in the crime conspired further.
A police official stated, "We plan to respond strictly to financial crimes infringing on the livelihood of ordinary citizens, such as unauthorized fund-raising, especially during difficult economic times."
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